Sound organizational decision making models are essential for all businesses in today’s local and global markets. Given the current global economy, manufacturing and knowledge outsourcing decisions are extremely important and often very difficult decisions. In most cases, good decisions result in smarter organizational realignments and enhanced competitiveness, and in some cases, the right decision ensures an organization’s survivability. Further, given the dynamic nature of outsourcing, organizations, especially, larger ones, may need to make outsourcing decisions multiple times and under varying circumstances. Thus, designing and implementing good outsourcing decision models are critical in today’s business environment.
In this paper, we present unified outsourcing decision and implementation models, including a placement model, a layered outsourcing model, and a modified waterfall process model for implementing the layered model. The placement model allows an organization to carefully examine its business processes and activities, in order to identify the benefits of keeping each process or activity in-house versus outsourcing it. The layered outsourcing model is a tri-faceted decision process for governing, managing, and executing outsourcing. The facets are the in-house aspect, the outsourced aspect, and an arbitration aspect. The modified waterfall model is an iterated, parallelized waterfall model which resembles an Agile development model and which facilitates effective implementations of the layered outsourcing model.
An interesting “result” of our models is that effective outsourcing decisions do create high value positions at the home sites. If we consider the information technology industry, these positions are best filled by persons with combined management and technical skills. This increase in demand for highly skilled personnel creates interest in education and research, which in turn enhance the region and country that promote outsourcing.
|Keywords:||Outsourcing, Outsourcing Decision Model, Outsourcing Implementation Model, Modified Waterfall Process Model|
Diebold Incorporated/Kent State University, North Canton/Kent, Ohio, USA
Professor, Department of Computer Science, Kent State University, Kent, Ohio, USA
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