Towards a framework for performing outsourcing capability

Abstract

Debasisha Mishra, Biswajit Mahanty, (2014),"The effect of onsite-offshore work division on project cost, schedule, and quality for re-engineering projects in Indian outsourcing software industry", If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The aim of this paper is to go beyond the "What to outsource" and "To Outsource or Not" debate. Recognizing outsourcing as a fast growing reality that firms have to depend upon, the paper concerns itself with optimal management of outsourcing arrangements through the practice of "outsourcing capability". It argues that outsourcing failure can be mitigated if organizations see outsourcing as an "ongoing activity" to be managed as opposed to treating it as a one-time opportunistic "act". Design/methodology/approach -Based on the review of existing literature and drawing upon recent instances of outsourcing successes and failures, the paper develops a conceptual framework which divides various organizational processes into four different classes. It delineates the varied aspects of "outsourcing capability" that a firm would need to use to manage these varied class of processes as and when they are outsourced. Findings -There is no "one-size-fits-all" approach to managing outsourced processes. Different processes require emphasis on different aspect of outsourcing capability if outsourcing is to deliver the envisaged benefits. Originality/value -The traditional focus in outsourcing literature has been on the core/non-core process with the recommendation to keep core processes in-house and outsource the non-core processes. This distinction can be transitory and hence detrimental in the era of hyper-competition. I argue that firms should instead focus on developing and refining aspects of "outsourcing capability" relevant to the varied class of processes that they wish/need to outsource.

Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi

“…Similarly, the TCE theory highlights that logistics outsourcing provides an avenue for conducting business at lower transaction costs when compared to in-house operations, thus improving firm performance (Bolumole, Frankel & Naslund 2007;Pratap 2014). The RBV and TCE theories have been applied extensively in logistics outsourcing research (Liu et al 2015;Pratap 2014), depicting their relevance to guiding development of predictive models in logistics management. Past research has identified the increased importance of logistics across the globe in determining overall firm performance, as supply chains become complex (König & Spinler 2016), thus reinforcing the importance of this study.…”

“…The RBV theory holds that an enterprise can acquire resources and capabilities through outsourcing to meet its customers' needs (Wong & Karia 2010). Similarly, the TCE theory highlights that logistics outsourcing provides an avenue for conducting business at lower transaction costs when compared to in-house operations, thus improving firm performance (Bolumole, Frankel & Naslund 2007;Pratap 2014). The RBV and TCE theories have been applied extensively in logistics outsourcing research (Liu et al 2015;Pratap 2014), depicting their relevance to guiding development of predictive models in logistics management.…”

“…Pratap (2014) argued that logistics outsourcing can best be explained by the RBV and TCE theories. The RBV theory holds that an enterprise can acquire resources and capabilities through outsourcing to meet its customers' needs (Wong & Karia 2010).…”

Outsourcing Na Indústria Paranaense: Um Estudo Empírico

“…A tomada de decisão por outsourcing, tornou-se uma prática imperativa nas organizações, uma estratégia chave na indústria e alguns setores de serviços (GUNASEKARAN et al, 2015). Isto posto, as organizações se valem das práticas de outsourcing na produção de produtos e serviços de externamente, para obter vantagem competitiva, focando em forças e flexibilidade, segurança da informação, localização geográfica, entre outros fatores inerentes de cada segmento de atuação (PRATAP, 2014;GERBL, et al, 2015;GUNASEKARAN et al, 2015;TURKULAINEN, 2017). No entanto, as organizações utilizam estrategicamente o outsourcing visando essencialmente redução de custos e melhor desempenho.…”

Aligning flexibility with uncertainty in software development arrangements through a contractual typology

“…However, with the increasing gap between the complexity of contemporary business environments and the simplicity of prevailing contractual arrangements, it is inevitable that many external relationships will fail to achieve their objectives. (Pratap, 2014).…”