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outsourcing washington http://www.dau.mil/pubs/arq/99arq/washington.pdf outsourcing, Lacity, management, contract, cost, subcontractors, Specify, savings, monitoring. As outsourcing has come into vogue for both commercial and government downsizing initiatives, the success or failure of the contracting efforts has increasingly become dependent on the effectiveness of the related subcontracting. The response of some companies has been to select their own subcontractors---which has resulted in cost savings, but also has created the necessity for increased contract monitoring. Author of the Year Award (1997), and the Army Material Command's Cost Analysis Award for Modeling (1988). A member of the Army Acquisition Corps since its inception, he is rated Level III in career fields A, K & S. (E-mail address: washinwn@mail1.monmouth.army.mil) JIS_Spring_02_Yost_Harmon contracting, outsourcing, bidders, multiple, Casper Wiggins, Uday Murthy, publication, Data availability, System performance. ABSTRACT: Outsourcing of information systems (IS) is becoming an increasingly popular phenomenon. Of particular concern are the types of information available for contracting and the observability of that information. This paper examines the form of such outsourcing contracts by casting the problem in a principal-agent setting using the theory of mechanism design. The analysis we provide helps to (1) define the optimal contract for IS outsourcing, (2) understand the effect of unobservability on the form of the contract, and (3) examine the effect of multiple bidders. In summary, our analysis finds support for the growing trend toward equitybased contracts and partnership agreements in outsourcing relationships. Accepted for publication by Uday Murthy and Casper Wiggins. Brown Raysman vendor, customer, BPO, business, risk, outsourcing, investment, responsibilities, contract. BPO is where strategic value through outsourcing is created by creatively examining the process and changing the way it is actually performed. · With the Internet revolutionizing internal and external business processes for all companies, large and small, why would a company NOT hire a BPO outsourcing vendor to reengineer and integrate the process? -- access to highly qualified, difficult-to-find IT, BPO and ERP experts -- even if only one competitor is focusing on core, shouldn't YOU? BPO can create a competitive advantage by allowing companies to invest in new functions (capabilities) that are not core capabilities, functions that they could not afford to invest in previously. For example, vendor may develop software in the course of reengineering the outsourced process. meta http://www.genuity.com/dmail/rocket_science/meta.pdf vendors, market, Web Hosting, Fair/Good, evaluation, business, technology, customers, Exodus. The Web hosting market includes companies that provide facilities, infrastructure, and services used to house and operate or manage Web services. Vendors attacking the high end tend to either be large organizations with a managed hosting division or engaged in a partnership with a larger vendor. Our evaluation identifies three market leaders and a heavy clustering in the challenger space, indicating little differentiation between vendors. Our market performance evaluation includes a review of each vendor's product and service attributes --- representing vendors' ability to provide value to customers. As variation in products used in the Internet data center is reduced (i.e., users consolidate around a smaller number of Internet platform vendors), the actual supported product selection is less of a differentiator. · metagroup.com Copyright © 2002 META Group, Inc. washngtn http://www.dau.mil/pubs/arq/99arq/washngtn.pdf outsourcing, contract, cost, savings, private, Air Force, GAO, industry, reports. Outsourcing has become an increasingly popular way to reduce costs and focus operations upon the main objectives of an organization. With foresight and proper structuring of the contract, more successes will come. As Secretary of Defense William S. Cohen has recently stressed (Cohen, 1997), in order to afford the future modernization of our force structure, we need to reduce the current cost of our existing support structure to "make it perform better at less cost by harnessing the revolution in business affairs." First, the contract should include monitoring and performance measures as discussed above. This is also stressed by Aubert, Rivard, and Patry (1996), who recommend that in order to achieve benefits from outsourcing it is important to have enforceable and indisputable measures defined in the contract, so that one can easily make enforcement and cancellation decisions. b181eng outsourcing, production, goods, industry, Finnish industry, costs, analyze, electronics, demand. This study analyzes the development of outsourcing in Finnish industry. By outsourcing we refer to purchasing of previously in-house produced intermediate goods from vendors outside the firm.1 The study has two main sections: first, we review the theoretical literature related to outsourcing and then analyze outsourcing trends in Finnish industry. In Section Two, we utilize statistics on national accounts, input-output tables and industrial structure statistics in order to analyze trends in outsourcing of intermediate goods and services production. Reasons for this increase include a tendency of companies to concentrate on their core competencies, pressures to reduce costs and efforts to exploit external, specialized vendors more efficiently. amsterdam_seminar_paper outsourcing, offshore, Russia, market, countries, business, costs, expertise, Indian. The need to keep up with technology innovation and a keen awareness of the benefits of outsourcing IT to offshore companies induce more and more Western businesses to look to the East as an offshore IT market capable of providing lower IT costs and skilled resources. Alongside other countries, Russia is emerging as one of the world's leading offshore development providers. A shortage of IT professionals is so critical in countries with developed economies that most experts predict that it will be several years before the situation may improve. Russia enjoys obvious benefits that attract overseas customers. economy, the engineering knowledge and experience remains. 2001s-18 outsourcing, satisfaction, cost reductions, success, technology, scale, des, Australia, CIRANO. Le CIRANO est un organisme sans but lucratif constitué en vertu de la Loi des compagnies du Québec. Le financement de son infrastructure et de ses activités de recherche provient des cotisations de ses organisationsmembres, d'une subvention d'infrastructure du ministère de la Recherche, de la Science et de la Technologie, de même que des subventions et mandats obtenus par ses équipes de recherche. One factor congeneric modelling was then done on the expanded OS measure (the 9 items adapted from the OS scale, plus the two additional satisfaction items described earlier). It was clear from this analysis that the OS measure involved more than two dimensions, indicating that outsourcing success was more complex than had, to date, been envisaged. EAWFeb2000 employment, implied contract, exceptions, public policy, industry, THS, courts, doctrines, workers. The U.S. temporary help services (THS) industry grew at 11 percent annually between 1979 and 1995, five times more rapidly than non-farm employment. Section 1 of the paper introduces the three classes of common law exception to the at-will doctrine, evaluates their implications for THS and other 'outsourced' employment, and concludes that one exception in particular -- the implied contractual right to continued employment ('Implied Contract') -- provides a compelling incentive for firms to utilize temporary help workers. A model of outsourcing with positive firing costs. Given a tradeoff between minimizing firing costs and encouraging specific capital investment, the model suggests that the relevant question for firms is not simply 'which workers sue' but how costly it is to outsource them to avoid these suits. Consulting customer, Sonata, partnership, offshore, client, delivery, technology, management, outsourcing. Today's customers are demanding more value for the same, if not less, price in terms of deliverables vis-a-vis technology, domain, deadline, and scalability, while seeking higher productivity. And companies are discovering that alliances with offshore development partners are not only becoming critical but also paying rich dividends in customer satisfaction indices across industries. Sonata Software's Strategic Offshore Partnership Framework is designed to address this need of the market and is built on its philosophy - The Power of Partnership. The framework leverages individual strengths in a collaborative manner so that the end delivery to the IT Service Provider's client is a value added service. Bdenis outsourcing, in-house, CERN, control systems, risks, project management, constraints, contractor, cost. During the last years, the SL division has gained some experience with the outsourcing of control systems. These projects provide a good basis for a meaningful comparison between in-house and out-house developments. The outsourcing approach has allowed CERN to obtain complete and reliable products delivered on time and well documented. Similar results have been achieved with the in-house projects thanks to the adoption of rather formal software engineering and project management practices. Risks related to cost and time are transferred to the contractor when the outsourcing solution is chosen. The time delay required for the tendering process, the cost of knowledge transfer and the constraints imposed by CERN purchasing rules shall also be taken into account. info_29_4 outsourcing, core competency, sub-function, Eliot, market, non-core competency, capabilities, world-class, basis. Outsourcing continues to be a popular management tool. Sometimes done in a whole-scale manner, while in other instances done on a small-scale selective basis, every function or sub-function of an organization is ultimately a candidate to be outsourced. Common wisdom dictates that any function or sub-function that is considered strategic and therefore an essential part of the core competency of an organization should not be outsourced. Major outsourcers seem to have settled on certain functions and sub-functions that they offer to outsource for organizations. Thus, if a function or sub- function in your organization is one of the popular outsource areas, it is a viable candidate for outsourcing due to the ready supply of market substitutes. outsource outsourcing, contracts, District, management, water, governments, resources, private sector, private. Privatization and outsourcing are distinctly different: Privatization is the process of shifting responsibilities and functions from Government to the private sector. This may be partially due to the need for professional employees at these agencies and the lack of cost savings that are available for highly skilled workers. For this reason, sometimes restructuring can be more effective than outsourcing because it can provide ways to reduce overhead. If this happens, the District will have no choice but to continue to outsource the service despite the high cost. Management believes there are many opportunities for outsourcing in the area of land stewardship, interim property management and mitigation. outsource outsourcing, risk, operating, staff, bank, Basle, senior management, exposure, firm. Rather than reducing operational risk by outsourcing certain functions, a firm could in fact be increasing that risk. But despite the potential advantages, a firm does not outsource its operational risk when it outsources an activity. On the contrary, it might well be increasing its exposure to operational hazards such as fraud, declining staff morale and legal liability. Outsourced activities should be governed with the same concern for operational risk as they would be in-house. It is prudent to ask for details of practical experience and to check references before contracting with an outsourcer, in order to reduce any potential exposure to losses resulting from operating mistakes. sturgeon technology, Massachusetts Institute, Industrial Performance, production, Revenue, Contractors, Lead Firm, Product Innovation Space, suppliers. Product Innovation Space Lead Firm Production Space Contractors (many) What's in the link? All Celestica revenues in 1995 were from IBM. · How is knowledge transfer in the inter-firm link changing? · What happens when knowledge in the link becomes "de-codified"? · When do the interests of lead firms and key suppliers converge or diverge? · What are the institutional factors that support or inhibit "re-codification"? | |
