The outsourcing strategy of local and multinational firms: A supply base perspective

Firms outsource through connecting to local and global supply bases and making such connections produces costs of search and evaluation, which are a function of transaction characteristics and firm capabilities. We argue that firms outsource more when those costs are low. Hence, domestic subsidiaries of multinational firms, with low cost access to both local and global supply bases, outsource more than either domestic firms or foreign subsidiaries, as confirmed by evidence from a large data panel. We also propose that among foreign subsidiaries, distance from the home country co-determines search and evaluation costs such that subsidiaries from more distant countries outsource less. This is confirmed for geographic distance, but a positive effect is found for political distance and a mixed effect for cultural distance.

Using standby generators in support of an electricity network: logistics and experience

Electricity load shifting is becoming a big topic in the world of ‘green’ retail. Marks & Spencer (M&S) aim to become the world’s most sustainable retailer (1) and part of that commitment means contributing to the future electricity network. While intelligent operation of fridges and Heating, Ventilation and Air Conditioning (HVAC) systems are a wide area of research, standby generators should be considered too, as they are the most widely adopted form of distributed generation. In this paper, the experience of using standby generators in Northern Ireland to support the grid is shared and the logistics of future projects are discussed. Interactions with maintenance schedules, electricity costs, grid code, staffing and store opening times are discussed as well as the financial implications associated with running generators for grid support.

Knowledge process outsourcing in financial services: The vendor perspective

This research reports the findings from a study on nine knowledge process outsourcing (KPO) vendors working in the financial services industry. It delineates financial business processes along a low to high-end continuum. Findings suggest that KPO vendors are gradually moving along the value pathway offering more complex intellectual value activity based products and services to clients. However, they face many challenges including gaining the confidence of potential clients about outsourcing knowledge-intensive work, and finding effective solutions to mitigate outsourcing risk. Our paper concludes by developing a taxonomy of KPO scenarios to provide a backdrop for further academic research and to illustrate current practice.

The IT outsourcing market-place: vendors and their selection

This paper focuses on outsourcing vendors, their characteristics and the vendor selection process. It draws on current research and two research studies, one specifi- cally examining outsourcing vendors and the other examining vendor-client issues. We first outline the development of the market for the outsourcing of information technology/information systems services and activities, then detail the characteristics of different types of vendor companies and their competitive positions, before providing a client perspective to the issue of vendor selection.

Crocodiles in the regulatory swamp: navigating the dangers of outsourcing, SaaS and shadow IT

Corporates are entering the brave new world of the internet and digitization without much regard for the fine print of a growing regulation regime. More traditional outsourcing arrangements are already falling foul of the regulators as rules and supervision intensifies. Furthermore, ‘shadow IT’ is proliferating as the attractions of SaaS, mobile, cloud services, social media, and endless new ‘apps’ drive usage outside corporate IT. Initial cost-benefit analyses of the Cloud make such arrangements look immediately attractive but losing control of architecture, security, applications and deployment can have far reaching and damaging regulatory consequences. From research in financial services, this paper details the increasing body of regulations, their inherent risks for businesses and how the dangers can be pre-empted and managed. We then delineate a model for managing these risks specifically focused on investigating, strategizing and governing outsourcing arrangements and related regulatory obligations

Competitividade e estratégia : uma análise do segmento de outsourcing da indústria brasileira de software

O objetivo desta dissertação é apresentar uma análise das condições competitivas e das características estratégicas da indústria brasileira de software no segmento de Outsourcing, considerando o período de 1995 a 2005. O estudo foi desenvolvido por meio de uma pesquisa de campo com 10 empresas de software, que foram divididas de acordo com seu mercado de atuação: interno e externo. Os resultados apontam as diferenças no padrão de concorrência entre esses dois mercados, bem como algumas diferenças chaves entre os diversos subsegmentos do mercado de Outsourcing.

Future cenario planning in Brazilian logistics and transportation sector

Nas últimas décadas o setor de logística passou por grandes transformações pelo mundo. Assim, a eficiência do sistema logístico é importante para o crescimento econômico, a diversificação, redução dos custos operacionais e da pobreza. Segundo o Banco Mundial, o Brasil tornou-se uma das maiores economias do mundo, mas os custos logísticos elevados colocam em risco esse crescimento. Estes custos são em grande parte o resultado de diferenças em infraestrutura de cada região, juntamente com os encargos do setor rodoviário, que corresponde por 60% do total do transporte de carga do país. Entretanto, a logística brasileira está às portas de uma nova revolução, em práticas de negócios e eficiência, e também na qualidade e disponibilidade da infraestrutura de transportes e comunicações, e novos projetos e práticas para superar a situação. O objetivo deste estudo não é analisar o presente e as atuais tendências de logística do Brasil e do setor de transporte, mas sim modelar possíveis cenários futuros para os próximos anos. Em outras palavras, este trabalho mostra diferentes possibilidades de como o setor de logística e transporte poderá ser no futuro. Para isso, este trabalho irá utilizar a metodologia de cenários prospectivos e entrevistas com especialistas relacionados da área.

Green logistics: key elements for a well-functioning sustainable logistics system

A growing awareness of the modern society about the direct relationship between a growing global community with increasing total industrial activities on one hand and various environmental problems and a natural limitation of natural resources on the other hand set the base for sustainable or “green” approaches within the supply chain. This paper therefore will look at the issue of “Green Logistics” which seeks to reduce the environmental impact of logistics activities by taking into account functions such as recycling, waste and carbon emission reduction and the use of alternative sources of energy. In order to analyze how these approaches and ideas are being perceived by the system as a whole two models from the area of prospective and scenario planning are being used and described to identify the main drivers and tendencies within the system in order to create feasible hypothesis. Using the URCA/CHIVAS model allows us to identify the driver variables out of a high number of variables that best describe the system “Green Logistics”. Followed by the analysis of the actor’s strategies in the system with the Mactor model it is possible to reduce the complexity of a completely holistic system to a few key drivers that can be analyzed further on. Here the implications of URCA/CHIVAS and Mactor are being used to formulate hypotheses about the perception of Green Logistics and its successful implementation among logistics decision makers by an online survey. This research seeks to demonstrate the usefulness of scenario planning to a highly complex system observing it from all angles and extracting information about the relevant factors of it. The results of this demonstration indicate that there are drivers much beyond the factory walls that need to be considered when implementing successfully a system such as Green Logistics.

Strategic outsourcing? : the Philips case in the LCD TV market

This work seeks to assess the outsourcing process adopted by Philips for producing LCD televisions. The authors used the Resource-based Theory and the Transaction Cost Theory for analyzing the case. Based on industry data and interviews with ten of the company’s senior executives, this study sought to understand how the decision making process was carried out and how it affected the company’s activities in the field of LCD televisions. Philips has lost its competitiveness in the Brazilian market – it went from being the leader in 2006 to fourth place in 2009, both as far as regards its sales volume and value. The executives pointed out that the LCD panel is an important resource and that its supply by third parties represented a high transaction cost. The results illustrate the complementarity that exists between the RBT and TCT theories in a competitive environment that has few players.