Week 6 - 2

Question 1

Reminder

Answer 1

“Outsourcing is the activity of taking activities that could be or have been carried out ‘in-house’ and moving them to ‘outsourced’ suppliers. Commonly known as ‘Make-or Buy’

Question 2

The ‘outsourcing decision’ involves several factors:

Answer 2

Compare the impact of ‘in-house’ vs. ‘outsourced’ on key performance objectives…are we better off? Or are there risks?
Serious consideration on strategic Competitive Advantage
Serious consideration on Risk

Question 3

Explain the role of ethics in global sourcing

Answer 3

“The design of any process should include consideration of ethical and environmental issues.”

When sourcing globally organisations encounter ethical and environmental issues such as:

Labour conditions
Sustainability
Corruption

Question 4

Apply the Outsource vs In-house (including financial) factors to determine whether activities should be outsourced or kept in house

Answer 4

As the impact and risk of outsourcing activities most of the time is larger (depending on single vs multiple and dyadic vs triadic) and the contract/relationship is more profound and longer term having, valid information is crucial.