Do it Yourself Outsourcing – You design the product or service that will be outsourced
(Due Week 5)
This case study allows you to choose the business process that will be outsourced. You must first decide on the company, and if you use a real one, please do not reveal any names or trade secrets. This may also be a fictitious organization if you choose to use one.
Prepare an executive summary document outlining the entire outsourcing / contracting process for those business processes that you decide to outsource. Your analysis must include the items below.
An analysis on which business processes you would outsource versus those that you would maintain in-house. You need to justify your decision for each business process maintained in-house or outsourced (e.g., accounting, editorial, photography, publishing, distribution, printing, layout, advertising, editing, articles, etc.).
For those services that you intend to outsource:
Establish the preliminary performance targets / level of service that will be required from the selected vendors;
Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit);
Determine the evaluation criteria that you will use to select the preferred vendor(s) (e.g., low price, best value, etc.) [Are there different evaluation criteria for different business units? Why?];
Identify the number of vendors that you will select to provide the services that will be outsourced (i.e., one vendor for all services versus individual vendors with specific expertise in each of the services to be outsourced); and
Construct a timeline that summarizes the bid activities and time duration for each contracting process (i.e., plan purchases and acquisition through select sellers).