Discuss the Outsourcing Decision Framework. Outsourcing Decision FrameworkThe figure below depicts the typical elements of the outsourcingdecision and shows where the motivators, benefits, risks, and factorsare typically encountered in such decision:Motivation foroutsourcingBenefits:- Cost savings- Increased quality- Augmented staffetc.Risks:- Loss of core knowledge- Increased costs- Low moraleNo- etc.Consideroutsourcing?EndYesFactors:- Costs- Environment- Strategy- Functioncharacteristicsetc.Evaluate organization'sfunctions for possibleoutsourcingSelect whichfunctions if anyto outsourceContinueFigure 4: Outsourcing Decision FrameworkSource: Kremic and Tukel, (2003)

A moving average method is a calculation that is done to analyze data points by making a series of…

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Business

Management

Discuss the Outsourcing Decision Framework.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Discuss the Outsourcing Decision Framework.

Outsourcing Decision Framework
The figure below depicts the typical elements of the outsourcing
decision and shows where the motivators, benefits, risks, and factors
are typically encountered in such decision:
Motivation for
outsourcing
Benefits:
- Cost savings
- Increased quality
- Augmented staff
etc.
Risks:
- Loss of core knowledge
- Increased costs
- Low morale
No
- etc.
Consider
outsourcing?
End
Yes
Factors:
- Costs
- Environment
- Strategy
- Function
characteristics
etc.
Evaluate organization's
functions for possible
outsourcing
Select which
functions if any
to outsource
Continue
Figure 4: Outsourcing Decision Framework
Source: Kremic and Tukel, (2003)

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