In modern times, outsourcing of services has become an entire dimension in business strategy. It has become international and global. While it is growing extensively, the nature and the focus of outsourcing is slowly evolving. And as it often happens with new concepts, outsourcing tends to become the panacea of some companies that do not really know how to deal with services in their company. The purpose of this paper is to offer a fresh view of outsourcing, showing how it has to be well adapted in each company and develop a global model for the decision-making process for the outsourcing of services.
[...] If some services are one of these activities, the company should definitely not outsource. A company that wants to outsource should first of all know itself perfectly before taking any decision. To conclude we can say that the decision of outsourcing services is highly dependent from the situation and structure of the company, it makes the development of a global model more complicated. However, most of the time, the same criteria will always be taken into account during the process of decision-making. The global [...]
[...] Examples of failure in outsourcing The first example of a failure in outsourcing concerns a taxi company. Taxis bleus is a Parisian Taxi company. In 2003, they decided to outsource their call center to Morocco. After three months, they were back in France. The reasons are quite simple. First of all the culture is not the same and it can affect the work. In this case, the addresses are not the same in the two countries: Morocco does not have street number, while they are very important in Paris. [...]
[...] In this third part, we will try to see in what sense it is possible to globalize the decision-making process for the outsourcing of services. a. The example of the call centers First of all, I decided to study more closely the outsourcing of the call centers, because it is the service that companies outsource the most. So I wanted to determine if call centers could be outsourced without taking into account the situation of the company. This question might seem purely rhetorical, as it seems obvious that the company should always be taken account, but the purpose of this paper is to determine if a global model can be developed, without considering too much the specificities of each company. [...]
[...] We can see that for 44% of the companies, outsourcing is made to reduce costs, that are one of the most attractive aspects of the outsourcing, but companies should not forget that outsourcing also has some disadvantages. We will now see the main disadvantages for companies in outsourcing services. b. Disadvantages of outsourcing The first disadvantage consists in a loss of control. When you outsource a service, you also outsource the control of this service to another company. This can be an important disadvantage because you will not have the same standards and objectives than this company. [...]
[...] For these two professors, the decision of outsourcing should be made closely with the financial department. Before outsourcing any service, a company has to study how much it will cost and how much it is going to save. The company also has to see if outsourcing can allow it to differentiate itself while acquiring new capabilities. This framework does not deal with all strategic outsourcing issues. While focusing on the financial aspect of this decision, it does not take into account as many criteria as the SVA tool, for example. [...]
Online readingwith our online reader
Content validatedby our reading committee