In the previous module and continuing in this one, you are focused on understanding cost and how it is determined by the production process or function used for the good or service. Over the past 15 to 20 years, more and more companies in the US and other developed economies have turned to domestic and global outsourcing to reduce the cost of producing their products. Companies are now finding that outsourcing offers the potential for much more than cost savings—it offers the opportunity for transformative change.
Your readings in this module (Link will open in new tab.) highlight these more recent uses of outsourcing. You are free to do additional research as well. Initial Post (not to exceed 750 words)
Your post should begin with a title indicating your industry, good or service, and should include section headings indicating when you are moving from answering one question to the next.
Your answer must draw on the readings– Linder’s article on transformative outsourcing and the Deloitte Survey,
You must draw a distinction between traditional and transformative outsourcing.
Additional research will add to the strength of your answer
For your discussion this week:
If in the previous 2 modules you are studied an industry other than the one in which you work, you should stick with that same industry for this week’s discussion.
1. Summarize the 4 types of transformational outsourcing identified in the Linder article in no more than 4 sentences each.
2. The Deloitte presentation identifies the top benefits of using global business services (GBS), ie outsourcing, as well as the top enablers of these benefits (see especially slide 21). LIST the top 3 benefits and top 3 enablers as identified by Deloitte’s survey.
3. In which of these ways is outsourcing being used (or might it be used) in your industry/company or the one you are studying in this course?
-Categorize the above as traditional or transformational outsourcing, and briefly explain your choice.
-If it is transformational, which of the categories of ‘Transformational Outsourcing’ best fits your organization’s use of outsourcing?
4. What are (or could be) the key benefits to your company or industry from outsourcing?
-How do these compare to those identified in the Deloitte survey as the most frequently cited benefits by companies?
5. Do you see changes in the remote workplace induced by the COVID-19 re-shaping your industry or company’s use of outsourcing and if so, how?
Readings: Attached as files as well as previous discussion.