Outsourcing Of Functions Research Articles

Nearshoring, reshoring, and insourcing: Moving beyond the total cost of ownership conversation

As firms from across all manufacturing sectors are rethinking their outsourcing and offshoring strategies, there is the potential for a manufacturing renaissance in the U.S. The findings from this case study suggest that the current manufacturing relocation shift is not perceived by manufacturers as a long-term business strategy (as outsourcing has been). As such, the results suggest that manufacturing relocation decisions based exclusively on models such as total cost of ownership (TCO) will not deliver anticipated near-term costs savings. In addition to TCO, firms must have access to information concerning the complexity of the outsourced manufacturer’s manufacturing and supply chain processes in order to fully evaluate the ‘as-is’ outsourced function against ‘to-be’ manufacturing relocation opportunities.

Introduction to comments on 'Outsourcing: how to reform WHO for the 21st century'

In 6 months, WHO will have a new Director General, who will likely start off by promising and identifying areas for reforms. One intent of such reforms will likely be...

An approach to risk Assessment for Outsourcing Logistics: Case of Pharmaceutical Industry

Outsourcing functions such as logistics has become an industry trend towards cost-effectiveness and high service level performance. Many firms have acknowledged the benefits of relying on external experts in a need to empower their abilities. The pharmaceutical industry in particular is challenged by constant evolution of their development and manufacturing processes. Outsourcing logistics becomes then an attractive option for firms to focus on their core competencies. However, alongside the numerous benefits of outsourcing, various risks arise with the implementation of this option. This paper contributes to the literature by presenting a decision model that takes into consideration risks of outsourcing logistics in the pharmaceutical supply chain. Risk identification and a multi-criteria risk assessment model using ELECTRE TRI are described.

A Privacy-Preserving Outsourced Functional Computation Framework Across Large-Scale Multiple Encrypted Domains

In this paper, we propose a framework for privacy-preserving outsourced functional computation across large-scale multiple encrypted domains, which we refer to as POFD. With POFD, a user can obtain the output of a function computed over encrypted data from multiple domains while protecting the privacy of the function itself, its input and its output. Specifically, we introduce two notions of POFD, the basic POFD and its enhanced version, in order to tradeoff the levels of privacy protection and performance. We present three protocols, named Multi-domain Secure Multiplication protocol ( MSM ), Secure Exponent Calculation protocol with private Base ( SECB ), and Secure Exponent Calculation protocol ( SEC ), as the core sub-protocols for POFD to securely compute the outsourced function. Detailed security analysis shows that the proposed POFD achieves the goal of calculating a user-defined function across different encrypted domains without privacy leakage to unauthorized parties. Our performance evaluations using simulations demonstrate the utility and the efficiency of POFD.

Batch verifiable computation of outsourced functions

Verifiable delegation of computation has attracted considerable attention in recent years and had resulted in a number of delegation models. In the verifiable computation model of Gennaro et al., a client wants to delegate the computation of a function to a cloud server. The client generates an encoding of the function that will be stored on the cloud server, and has the property that the cloud server can compute the function on any client's supplied input together with a correctness proof. The proof will allow the client to verify the correctness of the computation by the server using substantially less time than performing the computation itself. In all existing verifiable computation schemes the encoding of the delegated function requires at least twice as much cloud storage as the function itself. This stringent requirement on storage can become a bottleneck in practice. In this paper, we introduce batch verifiable computation which enables the simultaneous delegation of multiple functions. We construct batch verifiable computation schemes that effectively reduce the requirement on cloud storage while preserving efficient client verification. To delegate $$s$$s functions, our batch verifiable computation schemes only require $$1+1/s$$1+1/s as much cloud storage as the $$s$$s functions themselves. Our schemes are asymptotically optimal in terms of cloud storage in the sense that $$1+1/s\rightarrow 1$$1+1/s?1 as $$s\rightarrow \infty $$s??. We start with an information---theoretic construction and then introduce computational assumptions to obtain the above efficiencies.

First Telecom: Insourcing vs. Outsourcing

First Telecom: Insourcing vs. Outsourcing

Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry

The fast growing demand of minerals due to increasing level of consumption has got the mining industries focus on developing and developed countries. Generally mining and mineral operation is an excellent contributor to economic growth and development in each country. Presently in many countries, the mining sector intends to augment their production operation with private participation due to the challenges that they are facing like, cost reduction, improving capital project management, employee management, environmental impacts, enhancing corporate social responsibility, global economy crisis, etc. The benefits of outsourcing are not only reduced cost in operations but also increased productivity and efficiency, accessing the relevant technical experts, implementation of the latest technologies like green technologies for green mining and ultimately increase in profit. Moreover, the mining industries receive significant global attention due to the nature of their environmental and social responsibilities, and it is necessary for the mining sector to turn their operation towards green practices. The proper vendor selection for production outsourcing may bring the solution to the challenges faced by the mining industries. The vendor selection in mining industries depends on varieties of conflicting tangible and intangible criteria and this paper deals with the suitable vendor selection for the production process in the green mining industries based on economic and environmental benefits and risk factors. This paper proposes a model frame work with case study through the combined approach of analytic hierarchy process (AHP) and Taguchi loss functions. The proposed method is used to measure the loss due to the outsourcing vendor performance for the pertinent benefit and risk factors and identify the best vendor to perform an outsourcing function in the mining industry production.

Commonality Index of Outsourced Function Module Based on Generalized Dice Coefficient

Commonality analysis is the starting point of product family redesign, providing guidance for enterprises to improve commonality, reduce product cost and manufacturing complexity. Firstly, the component-based commonality indices introduced so far are analyzed and the deficiency in respect to commonality evaluation of outsourced function module is indicated. Then, the generalized performance matrix of outsourced function module is established and the commonality index based on generalized Dice coefficient is introduced. Finally, the calculation process is demonstrated by a case study of engine modules. The proposed index is of certain significance to reduce the types of outsourced module instances, save procurement and management cost and reduce the complexity of manufacturing systems.

The Effect of Continuous Auditing on the Relationship between Internal Audit Sourcing and the External Auditor's Reliance on the Internal Audit Function

ABSTRACTPrior research indicates that external auditors are willing to rely to a greater extent on the work of the internal audit (IA) function when the function has been outsourced, or co-sourced, as opposed to maintained in-house. This article addresses the extent to which this relationship between IA sourcing and external auditor reliance is moderated by the use of continuous auditing. One hundred forty-two auditors, all CPAs, participated in an experiment in which we manipulated both IA sourcing type (in-house versus outsourced) and audit type (periodic versus continuous) and measured ratings of external auditor reliance on the IA function. Results indicate that when the IA function uses periodic auditing, external auditors rely more on an outsourced function than an in-house function. However, when the IA function uses continuous auditing, external auditors do not differ in reliance on an outsourced or in-house function. The prior literature suggests that outsourcing an IA function can lead to higher levels of external auditor reliance and subsequently lower external audit costs. The results here suggest that maintaining the IA function in-house and employing continuous auditing may lead to similar external audit effects.

Business Process Outsourcing in Indian Banks.

The service providers who specialize in these services have developed efficiencies and learned how to offer high quality and competitive pricing. Traditionally, Banks have outsourced for tactical reasons-reduce costs, free up cash, obtain resources not available internally, and improve their performance. Outsourcing some functions can shift costs from fixed to variable, thus enhancing a company's ability to manage costs more effectively. If a Bank is moving into a new arena, outsourcing enables it to add new functions with minimal impact on internal resources. It is difficult to quarrel with cost savings, and the Banks that approach outsourcing with careful planning save money. Outsourcing is one such abstracted term that has, over time, amassed considerable positive momentum as well as negative baggage.Outsourcing has been around since the time of the hunters and gatherers. Those who were strong hunters hunted and those who were strong gatherers gathered. Simply put, the primitive society perhaps subconsciously recognized the importance of specialization and outsourced certain functions to those who excelled at them or, in economic terms,performed them more efficiently.

Customer needing: a challenge for the seller offering

PurposeThe present increasingly tough economic climate has uncovered the need to go beyond the prevailing seller‐oriented models and company practices in order to capture the factors that essentially drive buyer companies. What is needed is a genuinely customer‐side concept that corresponds to offering. The purpose of this study is to develop a new concept labeled “customer needing” which emerged from the material collected in an industrial service setting.Design/methodology/approachThe paper reports a case study of a typical high‐technology industrial service with a strong outsourcing trend. The empirical data consist of interviews with eight representatives from the seller company and 16 interviews from different customer companies.FindingsA needing is based on the customers' mental models of their business and business strategies that affect their priorities, decisions, and actions. It is itself a mental model of how the customer conceives the fulfillment of a specific task. In this paper the needing is operationalized as a profile of three dimensions containing six functions that represent desired value in use for the customer: the doing dimension comprises a relieving and an enabling function; the experiencing dimension has an energizing and a sheltering function; and the scheduling dimension contains a time‐framing and a timing function. Empirical data are presented to illustrate the new concept.Research limitations/implicationsThis is a case study but the ensuing concept provides a framework for further research on value in use and mental models in an industrial service setting. The studied offering was a complex business service representing an outsourced function and the buyers were functional experts and higher‐level executives, all of them experts in the service in question.Practical implicationsThe concept of customer needing extends knowledge of value in use and consequently represents an important tool in developing successful seller offerings. The shift of focus from offering to needing can explain why some sales attempts fail and can thus reveal new business opportunities.Originality/valueIn addition to highlighting the mental models driving companies' priorities and behavior, the study offers insights into value in use in an industrial service setting. The concept customer needing helps to analyze and describe value in use and provides a new buyer‐side concept corresponding to the offering concept.

Knowledge Work and the Need for Trust: The Case of India's Publishing Services Industry

The study explores the socio-cultural aspects of client–vendor engagement when outsourcing book publishing services from the UK to India. It focuses specifically on the academic and higher education publishing segment. Drawing on interviews with senior managers from four UK-based book publishers and senior managers and personnel from five Indian publishing services firms, the study investigates: (1) whether both parties have a shared understanding of the complexity or knowledge intensiveness of the work being outsourced and the supplier's capabilities; (2) whether their perceptions affect the level of trust governing the service relation; and (3) whether publishers’ willingness to trust and their perception of the outsourced functions are partly determined by prejudices about, or cultural incompatibilities with, the supplier or offshore destination. Publishers and suppliers were found to have considerably different perspectives about the nature of work outsourced. Suppliers’ often exaggerated belief in their capabilities could lead them to expect unrealistic levels of trust from publishers. Finally, it was found that both trust and perceptions of job complexity are indeed affected by some publishers’ prejudices about India or Indian workers. The study concludes that perceptions of knowledge work, ctrust and cultural (in)compatibility are firmly interlinked and must be considered in conjunction when assessing outsourcing arrangements.

Sustaining competitiveness through information technology outsourcing

PurposeWith competitive pressures increasing, outsourcing has become a common phenomenon in today's global economy. While there is growing evidence of organizations increasingly seeking to outsource their information technology (IT) functions, there have been few comprehensive studies on this subject from the Middle East region. The purpose of this paper is to investigate the usage of IT outsourcing in Saudi Arabia.Design/methodology/approachEmpirical research is used to study the extent that firms use the services of IT companies, the time period these have been used, the decision‐making process for outsourcing IT function, and its impact on the organization.FindingsResults based on the analysis of data relating to 178 firms in Saudi Arabia indicate that most of these users are satisfied with the service providers and have largely seen positive developments within the organization.Research limitations/implicationsLimitations of this paper relate to the relatively small size of the sample. This somewhat limits generalization of findings to the entire Kingdom of Saudi Arabia.Practical implicationsFindings have several practical implications for small startup companies and even larger companies that are deciding to outsource IT function in the Arabian Gulf region. The results provide managers with evidence supporting the benefits of IT outsourcing.Originality/valueThis paper makes a valuable contribution given the fact that there are only a limited number of comprehensive studies dealing with the assessment of IT outsourcing functions.

Internationalization Of SMEs: Opportunities And Limitations In The Age Of Globalization

Economic growth and innovation in this global environment are fuelled increasingly by small and medium-sized companies. The purpose of this study is to examine the practices of small and medium-sized enterprises (SMEs) relative to exporting and outsourcing activities. Data from an exploratory survey of 100 companies suggest that outsourcing of research and development activities has remained stable while the non-core activities such as manufacturing, distribution, and marketing activities continue to be outsourced at an accelerating pace. The results also reveal that medium-sized firms are more involved in outsourcing of the non-core activities than those as observed for smaller firms. This paper concludes with a brief discussion of the implications of the survey findings for outsourcing and strategic management of the outsourcing function.

Knowledge for sale – the benefits and effects of off-shoring knowledge-based jobs in engineering, design, and R&D – a case study

A framework consisting of a conceptual model and a closed-loop knowledge work outsourcing decision model is developed. A process flow model of a medical device company's product development function is analysed, where this framework is applied to understand various outsourcing options for the company. The conceptual framework describes major attributes related to outsourcing decisions, parameters associated with various attributes and the relationship intensity of parameters with three knowledge work outsourcing options – in-house, near-shoring, and off-shoring. The proposed model is closed loop, emphasizing the importance of regular re-evaluation needed for an off-shored function. The modeling framework contributes to a company's decision whether or not a particular knowledge-based function should either be kept in-house, near-sourced or off-shored. The general perception of off-shoring is to reduce costs but, the proposed model takes into account additional factors such as, market accessibility, strategic partnership, reduced time to regional market, access to overseas talent pool, and governmental incentives, etc. These factors play a vital role in determining an outsourced function. The paper discusses various options and makes recommendations for tapping into technological advancements around the world, their effects on supply chain management and other competitive advantages presented by off-shoring.

Morning in America

The recession, credit crisis, and stock market crash have made inequality, unemployment, housing, and health care important policy issues once again. After 30 years of conservative ascendance, calls for effective regulation of Wall Street, fairer tax policies, and expanded programs serving unemployed, ill, and other vulnerable populations have replaced an unbridled faith in market and a disdain for government programs. As a result, 2008 elections have provided social workers with an opportunity to develop a stronger public commitment to social welfare. Since Ronald Reagan convinced a generation of Americans that nation's economic and social problems resulted from excessive government, conservative ideologues have made a fetish of their opposition to government programs designed to promote equality (lost, Glaser, Kruglanski, & Sulloway, 2003). Conservatives claim that government caused economic and moral decline (Bork, 1997; Gilder, 1981) and that social welfare programs actually harm recipients (Mead, 1986; Murray, 1984). Conservatives in control of federal government reduced taxes, deregulated business, and diminished social programs. The Bush administration outsourced government functions and tolerated corruption and corporate irresponsibility, leaving economy in ruins (Frank, 2008, Galbraith, 2008). Although 2008 elections and poor economic conditions suggest a major change in sentiment, United States remains bitterly divided along ideological lines--red and blue states. Ideological convictions provide comfort, identity, and a rationale for policy. Impervious to rational discourse and empirical evidence, they calm fears and settle uncertainty. Well-established conservative interest groups committed to a free market and low taxes, mistrustful of government, and passionately opposed to left mean that Obama administration will face rancorous conflict as it takes up issues of budget, tax policy, health care, and social security. The Obama administration needs active support of social workers from every field of practice. Liberals and conservatives think differently about morality, politics, and social welfare (Lakoff, 2002). Conservatives believe that individuals are entirely responsible for their life circumstance; they are less empathic, less tolerant of difference, higher in authoritarianism, more accepting of material and status inequalities, and inclined to support status quo. In contrast, liberals value empathy, openness, and fairness; they value equality and welcome change (lost et al., 2003; McAdams et al., 2008). Every major policy debate Obama administration faces is as much a debate about values as it is about details of budget, health care, or social security. If Congress honors conservative values, social workers' hopes for reversing rising inequality, securing universal health care, and protecting a robust social security system will go unaddressed. Conservative campaigns featuring slogans about evils of socialism, class warfare, taxes, and debt try to make liberal view seem other, foreign, and un-American. Quoting Abraham Lincoln, President Obama (2009) has argued that the legitimate object of government is to do for people what needs to be done, but which they can not, by individual effort, do at all, or do so well, by themselves. Obama (2009) asserted that Lincoln recognized that while each of us must do our part, work as hard as we can, and be as responsible as we can--in end, there are certain things we cannot do on our own. There are certain things we can only do together. There are certain things only a union can do. By connecting this call for positive government to Lincoln--a hero admired by both left and right, a hero who stands apart from contemporary left-right debate--and harkening back to frontier images, Obama placed liberal social agenda in a proud historical tradition. …

The standing of the internal audit function within South African companies

This study examined the standing of the internal audit function in 30 of South Africa’s large listed companies as perceived by the chairs of their audit committees, their chief executive officers, chief financial officers, and chief operating officers, as well as the chief audit executives. The standing of the internal audit function in these 30 companies was based on the academic and professional qualifications profiles of the chief audit executives, the composition and qualifications of the internal audit staff complement, the independence of the function and the expectations that various stakeholders have of the function. The study reveals that the overall standing of the internal audit function in these 30 companies was perceived to be high. However, there are a number of concerning aspects that include the fact that most of the chief audit executives are qualified and registered South African Chartered Accountants (CA(SA)) and not holders of the Certified Internal Auditor (CIA) qualification. Additional concerns are that the chief audit executives’ reporting lines are not necessarily in line with currently perceived best practices; the stakeholders surveyed for this study held diverse views of the internal audit function; and in-house internal audit functions were viewed to be of a higher standing than those of outsourced functions. This study provides the internal audit profession with a scientifically researched benchmark of their status or standing in the eyes of their stakeholders and will enable them to measure changes to their status and effectiveness within their companies. Key words: Internal audit function, chief audit executive, independence, internal audit standing.

IT OUTSOURCING AND INTERNAL IT INVESTMENTS: SUBSTITUTES OR COMPLEMENTS?

The article presents the results of research on information technology (IT) outsourcing, as opposed to internal investments in IT, in the context of operating costs and staffing. An overview of related previous studies is provided, along with details of the research protocol, which involved the analysis of a sample of relevant data from 374 U.S. firms from 1999 through 2003. It was found that firms achieved significant cost savings by IT outsourcing, but more so when they also made internal IT investments, as the firms which were better able to manage the outsourced functions benefited the most.

Improving logistics outsourcing through increasing buyer–provider interaction

Logistics outsourcing has been at the top of the management agenda during recent decades. Through this approach companies have been able to improve logistics performance. However, several studies point out severe problems with outcome and it is even claimed that in some cases “logistics outsourcing has become a source of corporate failure and disappointment” [Boyson, S., Corsi, T., Dresner, M. and Rabinovich, E. (1999). Managing effective third-party logistics relationships: What does it take? Journal of Business Logistics, 20 (1), 73–100.]. Previous research shows that many companies have taken outsourced functions back in-house. The aim of this paper is to explore the reasons behind the problems in logistics outsourcing. Our analysis is based on an extensive literature survey. This examination indicates that outsourcing decisions require a holistic perspective. We apply the industrial network model [Håkansson, H. and Snehota, I. (1995). Developing relationships in business networks. Routledge, London.] for the analysis of potential consequences of logistics outsourcing. The main conclusion of the paper is that increasing interaction between buyer and provider would be beneficial to the outcome of outsourcing.

Exploring information systems outsourcing in U.S. hospital-based health care delivery systems

The purpose of this study is to explore the factors associated with outsourcing of information systems (IS) in hospital-based health care delivery systems, and to determine if there is a difference in IS outsourcing activity based on the strategic value of the outsourced functions. IS sourcing behavior is conceptualized as a case of vertical integration. A synthesis of strategic management theory (SMT) and transaction cost economics (TCE) serves as the theoretical framework. The sample consists of 1,365 hospital-based health care delivery systems that own 3,452 hospitals operating in 2004. The findings indicate that neither TCE nor SMT predicted outsourcing better than the other did. The findings also suggest that health care delivery system managers may not be considering significant factors when making sourcing decisions, including the relative strategic value of the functions they are outsourcing. It is consistent with previous literature to suggest that the high cost of IS may be the main factor driving the outsourcing decision.