Step by step: Breaking outsourcing down into manageable phases

The phases of the outsourcing process and the actions required are discussed. The most difficult and the most important phase of o a successful outsourcing process is to know what activities to outsource. The criteria for suppliers selection must be developed and should cover the reasons why the activity is being outsourced, the expected benefits and potential dangers. Contract negotiation is a very important phase of the outsourcing contract in which rules of the outsourcing are set. The transfer of activity phase corresponds to the reassignment of control of the outsourced activity from the outsourcer to the contractor.

Total acquisition cost of overseas outsourcing/sourcing: A framework and a case study

Purpose - The purpose of this paper is to develop a framework of total acquisition cost of overseas outsourcing/sourcing in manufacturing industry. This framework contains categorized cost items that may occur during the overseas outsourcing/sourcing process. The framework was tested by a case study to establish both its feasibility and usability. Design/methodology/approach - First, interviews were carried out with practitioners who have the experience of overseas outsourcing/sourcing in order to obtain inputs from industry. The framework was then built up based on combined inputs from literature and from practitioners. Finally, the framework was tested by a case study in a multinational high-tech manufacturer to establish both its feasibility and usability. Findings - A practical barrier for implementing this framework is shortage of information. The predictability of the cost items in the framework varies. How to deal with the trade off between accuracy and applicability is a problem needed to be solved in the future research. Originality/value - There are always limitations to the generalizations that can be made from just one case. However, despite these limitations, this case study is believed to have shown the general requirement of modeling the uncertainty and dealing with the dilemma between accuracy and applicability in practice. © Emerald Group Publishing Limited.