Effects of Outsourcing on the Flexibility Dynamic of System of Systems

Abstract

The requirements of various stakeholders associated with System of Systems (SoS) are constantly changing. Consequently, the shareholders priorities of return and risk continuously shift. However, their expectations of gaining value from the SoS are enhancing. One way of enhancing value from the SoS is by having the right amount of flexibility associated with it. Flexibility can be defined as the ability of a system to be able to adapt and cope with the changing environment. SoS flexibility means creating options at various levels, developing ways and means of change across the range of options. One possible way of creating enterprise flexibility is by outsourcing certain functions which would help affect the flexibility of an organization. The outsourcing done might also have an effect on each of the building blocks of SoS Flexibility. In this paper, we will look at how outsourcing could affect each of the building blocks of SoS flexibility as well as show whether it is beneficial or not for an organization to outsource depending on how it affects their flexibility. We also come up with a matrix to show the effects of insufficient as well as excessive outsourcing on the overall functioning of the SoS.