Chapter 9

Question 1

Outsourcing RISKS

Answer 1

●Potentially high cost of services
●Difficulty of insuring and consistency and corporate social responsibility
●potential loss of control over key areas of performance
●lost confidentiality data and intellect property
●lost of client focus added distance from the customer or end user by having an intermediary service provide
●ineffective management - the company may be unable to realize expected delivery / benefits due to poor choice of service provide whose supervision is poor

Question 2

Strategic sourcing analysis

Answer 2

Step 1: Identify the major strengths and then build on them

Step 2: Define the core competencies

Step 3: Look at the current and expected future requirements

Step. 4: Make a decision to make or buy

Question 3

Strategic and Operational factors to consider in make or buy

Answer 3

Management capabilities

Degree of risk

Availability of suitable external suppliers and positive suppliers

Workforce stability

Control