Risk Analysis for Outsourcing Decisions - 1466 Words

Abstract The purpose of this paper is to identify the possible risks to an organization in each of the following outsourcing situations: a) the use of an external service provider for your data storage; b) the use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking; c) the use of a vendor to support your desktop computers; and d) the use of a vendor to provide network support. The paper will include a risk mitigation strategy for each situation. Risk Analysis for Outsourcing Decisions Outsourcing, as defined by Wikipedia, the free encyclopedia, is the contracting out of a business function to an external provider. In this sense, two organizations enter into a contractual agreement involving an exchange of services and payments. Paul Strassmann, in his paper The Squandered Computer would prefer the term out-tasking because one organization is utilizing the specialization of another organization. According to Microsoft Business for Small and Mid-Size Companies, small business owners are outsourcing a range of services, from Human Relations to finance and accounting to customer services. Small businesses can now tap outside facilitators for a much greater range of services. As an example, entrepreneurs with strong sales often assume a full-time bookkeeper is needed to oversee the books. But, in fact, the company might not actually require a full-time bookkeeper; such servicesShow MoreRelatedFutronics Case949 Words   |  4 Pagesand terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services. Cost Status of the Company Description | Making Cost in Total | Buying cost in Total | Size of company: Raw | 2 Billion Dollar | | Cost of Goods sold | $ 900,000 | | Average Inventory (500 items in stocks) | $ 140Read MoreOutsourcing Service From A Supplier1500 Words   |  6 PagesOutsourcing is simply obtaining a product or a service from a supplier. Outsourcing services can supplement an existing internal source, replace an existing internal source, or consist of a new product or service a company has never provided before. In the past, it was commonplace for companies to try to do it all. Manufacturing companies would design, engineer, and build the end product while providing Information Technology support†¦ regardless of the complexity of the end product and its componentsRead MoreA CIOs Framework for Outsourcing IT Infrastructure1665 Words   |  7 PagesEvaluating Outsourcing IT Infrastructure Decisions: Considerations for Chief Information Officers (CIOs) Introduction The decision to outsource the critical infrastructure platform of an enterprise, which often includes support for enterprise applications essential for the business ot function, is one with long-range, strategic implications. The role of the CIO is quickly changing to be a strategist first and technologist second, concentrating on how IT infrastructure can be successfully usedRead MoreRisks And Risks Of Strategic Risk Essay1572 Words   |  7 Pagesfinancial implications. However, the financial or operation risks that arise from uncertainty can be managed. Nowadays, economies are able to identify the risk, to measure it, to appreciate it’s consequences, and then take action accordingly, such as transferring or mitigating the risk. Success deals with many kinds of risk. Without risk there would be no challenge in business. Successful opportunities comes when business materialise their risks, if captured, can maximise the results from an otherwiseRead MoreOutsourcing American Jobs Essay1561 Words   |  7 PagesIntroduction Outsourcing of American jobs overseas is displacing Americans in the United States. American blue-collar workers and the Middle Class American will soon be a word of the past if the US government continues outsourcing the low-skill jobs overseas. One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technologyRead MoreWhat Major Trends Do You See Affecting The Roles Of Purchasing Managers During The Next Decade?1447 Words   |  6 Pagessystem, finance and risk. As big data is increasingly intertwined into corporate decision-making processes, the purchasing manager will need to become more comfortable with advanced data mining and analysis techniques. They will also need to develop financial acumen that rivals those of their finance counterparts to build a leading company. The procurement risk management will adopt a more holistic strategy that includes total risk exposure, risk mitigation investments and risk transfer pricing. TheRead MoreOpre 6371 Case 5-21575 Words   |  7 Pagescomponents. (Note: You are Glenn) * Responsible for evaluation the outsourcing opportunity * Meet with Terry Gibson and purchasing manager to decide whether or not to take actions on outsourcing * Glenn had been approached by Greven E-Coating willing to provide electro coating services to Rondot Automobile * Goals of decision making: Reducing the total costs while maintaining and minimizing the risks from any changes made * Considerable global competition under severeRead MoreEssay on Scotts Miracle-Gro Case Solution1363 Words   |  6 Pagescentered on two decisions which include either to make and or buy. In other words whether Scotts Miracle-Gro should keep manufacturing in Temecula located in California, outsource production to a contract company in China or to build a company in China and relocate production there. The paper will be divided into three parts in which all the disadvantages and advantages of each scenario will be briefly discussed. At the end of the paper there will be two tables attached to support my decision of keepingRead MoreAnz Introduction1227 Words   |  5 Pagesreputation and security risk as a consequence of ANZ Bank recent outsourcing strategy. This report discusses three main issues that ANZ Bank’s management may have to consider if it is to enhance strength and core competency. Customer value proposition Firstly, as ANZ Bank has stressed that ‘becomes a super regional bank’ is a core strategy objective (ANZ 2012), ANZ will have to consider the potential effect for customer value proposition as a result of recent outsourcing strategy. It has been pointedRead MoreOutsourcing And Offshore Outsourcing : Outsourcing1038 Words   |  5 PagesRunning Head: Outsourcing and Offshore Outsourcing 1 Outsourcing and Offshore Outsourcing Natasha Bing Grantham University Outsourcing and Offshore Outsourcing 2 Abstract (Greaver, 1999) proclaims that outsourcing is of a strategic nature and that the decision-making process