Outsourcing Problem Research Articles

Study on the Joint Outsourcing Mechanism of Carbon Emission Reduction in The Supply Chain Considering Risk Appetite

In the case of considering the risk preference, according to the problem of supply chain carbon emission reduction joint outsourcing, build the enterprise outsourcing, the supply chain, and analyze the suppliers and manufacturers of the outsourcing factors of the decision, finally summarize the research in this paper, for the risk aversion of supply chain enterprise carbon emission reduction joint outsourcing mechanism to provide certain management enlightenment, to the future research.

Managing Outsourcing in IT Software Services: A study of 3 Perspectives and 3 Industries in UAE

Depending on outsourcing software services is increasing so it became important to understand the idea fully and know how to manage it. This paper aims to identify and prioritize software outsourcing problems facing organizations in the UAE and to propose a solution for keeping these services under control. Thus, to meet project’s objectives and answer research questions, qualitative research approach was used to cover “what” and “how” questions of the paper. The research’s data were collected through employing semi-structured interviews done with IT managers, business managers and vendors from three organizations and three service providers so a total of nine interviews were conducted. The results indicated that organizations are outsourcing their software services because of some common reasons and in the same time they are facing issues with their service providers. The discussion revealed shared problems among participants and prioritize them according to their repetition. The value and originality of this research comes from revealing the set of problems facing each one of three studied groups: IT manager, business manager and vendors to provide a clear image of the reality of software outsourcing in the UAE and to help future researches about the topic. Based on findings and relevant literature a set of practical implications were suggested to control software outsourcing services and eliminate their risks on clients and vendors.

Optimal and Efficient Auctions for the Gradual Procurement of Strategic Service Provider Agents

We consider an outsourcing problem where a software agent procures multiple services from providers with uncertain reliabilities to complete a computational task before a strict deadline. The service consumer’s goal is to design an outsourcing strategy (defining which services to procure and when) so as to maximize a specific objective function. This objective function can be different based on the consumer’s nature; a socially-focused consumer often aims to maximize social welfare, while a self-interested consumer often aims to maximize its own utility. However, in both cases, the objective function depends on the providers’ execution costs, which are privately held by the self-interested providers and hence may be misreported to influence the consumer’s decisions. For such settings, we develop a unified approach to design truthful procurement auctions that can be used by both socially-focused and, separately, self-interested consumers. This approach benefits from our proposed weighted threshold payment scheme which pays the provably minimum amount to make an auction with a monotone outsourcing strategy incentive compatible. This payment scheme can handle contingent outsourcing plans, where additional procurement happens gradually over time and only if the success probability of the already hired providers drops below a time-dependent threshold. Using a weighted threshold payment scheme, we design two procurement auctions that maximize, as well as two low-complexity heuristic-based auctions that approximately maximize, the consumer’s expected utility and expected social welfare, respectively. We demonstrate the effectiveness and strength of our proposed auctions through both game-theoretical and empirical analysis.

Building information modeling (BIM) outsourcing decisions of contractors in the construction industry: Constructing and validating a conceptual model

PurposeContractors utilizing building information modeling (BIM) outsourcing must firstly make reliable BIM outsourcing decisions. However, BIM outsourcing decisions are so complicated that need taking multiple economic, strategic, technical, and social factors into considerations. Traditional experience-based decision making may only take part of those critical elements (e.g., economic ones) into consideration while lacking a holistic analysis view. Thus, the decision results depending on the experience alone will obtain the local optimum rather than the global optimum. Therefore, this study intends to construct a conceptual model assisting contractors’ BIM outsourcing decisions. ApproachFounded on the Balanced Scorecard (BSC) concept, 15 criteria for BIM outsourcing decisions were summarized through 43 semi-structured interviews and a questionnaire survey. Then, the Analytic network process (ANP) dealt with the interrelationships among diversified criteria and computed the relative importance of these criteria. Finally, based on the criteria and related weights, the conceptual model for BIM outsourcing decisions was established and validated by ten contractors. FindingsThe results indicated the customer perspective and internal operations perspective were the two most important perspectives for making BIM outsourcing decisions. Meanwhile, five criteria within the customer perspective and internal operation perspective were more critical for BIM outsourcing decisions, namely “Customer satisfaction,” “Core focus,” “Timely BIM delivery,” “Availability of BIM service,” and “Flexibility to market needs.” Originality/valueThe study deals with the absence of a structured model for BIM outsourcing decision and functions as a point of departure for investigating BIM outsourcing problems. Along with making BIM outsourcing decisions from experience, contractors can also conclude a reference solution from the conceptual model and finally reach an optimal decision.

Accounting outsourcing as a tool for optimising the company’s activities

In modern conditions, cost minimisation for business entities is the main condition for existence in the market. One of the tools for such minimisation is outsourcing accounting. In addition to minimising costs, accounting outsourcing ensures the correctness of accounting, provides high-level advice, and protects against possible fines. The purpose of the study was to investigate accounting outsourcing as a tool for optimising the activities of entities in modern business conditions. The study applied methods of induction and deduction, cause-and-effect communication, tabular and graphic methods, description and concretisation, and logical generalisation. A single definition of the concept of accounting outsourcing was developed, which revealed the characteristic features of outsourcing. The SWOT analysis of accounting outsourcing services demonstrated accounting outsourcing as an effective tool for minimising costs. It is determined that all shortcomings and threats can be eliminated with careful selection of an outsourcer and signing a contract. The stages of accounting for accounting outsourcing consist in developing a document flow schedule that would ensure timely receipt of information for the customer and quality control of the services provided. A unified methodology for determining the economic effect of accounting outsourcing is proposed, which considers the disadvantages and advantages of existing methods, which would allow revealing the economic, organisational, and managerial aspects of outsourcing accounting. The main proposals received by the author based on the findings of the study can be used in accounting based on outsourcing. Further study of the problems of outsourcing as a tool for optimising the activities of enterprises in Ukraine should be directed to the development of laws and regulations to encourage companies to make managerial decisions regarding the use of accounting outsourcing

Control and optimization of workforce outsourcing decisions

Abstract With outsourcing of work having become ubiquitous, and more importantly, given its potential to become controversial, the need for such outsourcing decisions to be drafted carefully, managed effectively and controlled accurately cannot be underscored. In this context, this paper has constructed a mathematical model of organizations with ‘outsource’ employees to study the problem of the monitoring and control of the extent of outsourcing, and the number and distribution of outsource manpower. Control policies for maintaining desired blends of internal and outsource manpower have been mathematically derived, thereby obviating the need for further statistical validation. The cost savings that could be expected to accrue due to outsourcing, as also the problem of optimal outsourcing have been investigated and illustrated with numerical examples. This paper thereby studies a problem of contemporary relevance and importance, and organizations could use the suggested models as a decision-making tool, to generate alternative trade-off scenarios between cost savings due to outsourcing on the one hand, and the need to restrict the extent of outsourcing on the other.

Integrating Nanomaterial and High‐Performance Fuzzy‐Based Machine Learning Approach for Green Energy Conversion

Biomass is a renewable and sustainable green energy material. It is made up of lignin, cellulose, and hemicellulose with considerable amount of water, extractives, and inorganic chemical compounds. The use of biomass materials and other biogenic wastes for energy recovery represents an eco‐friendly way. Biomass material selection is one of the most significant aspects for any energy conversion process, and it is a common outsourcing problem that includes material preparation, reactor performance, economic assessment, and calorific value of the products. Fuzzy systems can be quite useful in high‐performance computing during the selection of biomass materials. In each engineering process, material selection is a crucial step since each material is having its own set of characteristics. This study presents the application of type‐1 fuzzy set for the selection of suitable biomass material for yielding maximum bio‐oil. This study focuses on seven locally available materials such as rice straw (M‐1), sunflower shell (M‐2), hardwood (M‐3), wheat straw (M‐4), sugarcane bagasse (M‐5), corn cop (M‐6), and palm shell (M‐7). The study evaluated seven important properties of the materials such as lignin (P‐1), cellulose (P‐2), hemicellulose (P‐3), volatile matter (P‐4), fixed carbon (P‐5), moisture content (P‐6), and ash content (P‐7). The findings demonstrated that sugarcane bagasse (M‐5) is the best option for maximum bio‐oil yield. Furthermore, the potential of nanoscale catalysts in improving the yield of bio‐oil through real‐time experiments was studied. The findings of this work add to our understanding of the application of fuzzy‐based systems for energy applications.

Devising a technology for managing outsourcing IT-projects with the application of fuzzy logic

An outsourcing IT project management model has been developed. The proposed model features taking into account the specifics of project management processes at outsourcing IT companies in terms of the uncertainty of the external and internal environment of their operation. The model is based on the stage-gate project management framework with fuzzy logic tools. The proposed modification of the fuzzy inference mechanism makes it possible to refuse to save the intermediate results which reduce the load on the database and create the possibility of using semantic networks. The technology of expert consultations was demonstrated by the example of decision-making regarding the assessment of the current status of the IT projects accepted by the outsourcing company for development. Dynamic nature and cyclical management of the portfolio of IT projects involves constant monitoring of the results of implementation with an appropriate regular portfolio reforming. The model was developed to improve the efficiency of the software development sub-process and minimize the negative consequences of financial dependence on the customer. The application software developed on the basis of the model of management of outsourcing IT projects and modification of the fuzzy inference mechanism has found practical application and was implemented in the computational practice of HYS Enterprise B.V. outsourcing IT company. Testing of the program shell has shown positive results in the course of solving the tasks peculiar to concrete stages of IT project management. The proposed structure and composition of the fuzzy knowledgebase of the expert shell are quite typical in terms of IT outsourcing problems. It is expedient to use the developed model at outsourcing IT companies in the process of project portfolio management

Logistical outsourcing as an effective enterprise activity mechanism rising

The purpose of the article is to substantiate logistics outsourcing as an effective mechanism for improving the efficiency of the enterprise.
 The authors summarize the arguments and counterarguments in the scientific discussion on logistics outsourcing as one of the best methods of optimizing resources in the activity of enterprises, one of the important factors of modern business. Systematization of the results of the research of scientific sources made it possible to identify the problems of outsourcing use in various spheres of activity of economic entities. Systematization of studies of aspects of enterprise management based on logistic approaches has allowed formulating the statement that special value all over the world in logistics is devoted to outsourcing. For many years there is a tendency in this area to transfer a part or all of the logistics functions to specialized companies and outsourcing of logistics services is used by the vast majority of enterprises. Because, as higher the level of consumption in the country, there is more need to involve in the supply chain the goods of qualified logistics operators and transfer part of their operations to logistics outsourcing.
 The authors estimate the logistic outsourcing of the enterprise of PE “VEGA LTD” for the method of Yu. Zhelinskiy, which combines the change of income and expenses of the enterprise. Based on the calculations, it is proved that outsourcing for PE “VEGA LTD” is profitable. Therefore, it is advisable to use outsourced services not only for transport logistics but also for other logistic activities of the enterprise.
 In the process of investigating the problems of logistics outsourcing and its impact on the efficiency of foreign economic activity of the company, the authors proved that outsourcing in logistics is one of the most modern business models. The use of this approach makes it possible to achieve significant competitive advantages in the activity of the enterprise. The main motives that drive outsourcing of logistics functions are the desire to make the business manageable, reduce transaction costs while obtaining quality service and profit. The results of the study are of practical importance and may be useful to scholars interested in the study of logistical outsourcing, as well as to the enterprises where outsourcing is most commonly used.

A Hybrid Genetic Algorithm for Integrated Production and Distribution Scheduling Problem with Outsourcing Allowed

In this paper, we studied a new integrated production scheduling, vehicle routing, inventory and outsourcing problem. The production phase considers parallel machine scheduling including setup times with outsourcing allowed and the distribution phase considered batch delivery by a fleet of homogenous vehicles with respect to holding cost of completed jobs. The objective of the Mixed Integer Linear Programming (MILP) formulated model is to minimize the total costs including production, outsourcing, holding, tardiness and distribution fixed and variable costs. Due to the nondeterministic polynomial time (Np)-hardness of the problem, we derive a number of dominance properties for the optimal solution and combine them with a Genetic Algorithm (GA) to solve the problem. To assess the efficiency and effectiveness of the proposed hybrid algorithm, we conduct the computational study on randomly generated instances. Sensitivity analyses showed the impacts of the parameters on the objective function were incorporated. In order to evaluate the significance of the differences among the results obtained by GA and GADP one-tailed paired t tests were performed and interval plots were depicted.

Transportation outsourcing problems considering feasible probabilities under stochastic demands

We consider the problem of transportation outsourcing under stochastic demands for a transshipment center for a home delivery service. The feasible probability of the outsourcing plan for each stochastic demand scenario is considered. A scenario-based stochastic model is developed by incorporating the statistical binomial distribution to formulate the feasible probability. The problem is first discomposed into three sub-problems and then a sequential heuristic method is developed to solve these sub-problems. Numerical tests show that the heuristic method can be applied to solve the problem and more importantly, demonstrate that our solution has advantages in terms of both feasibility and optimality compared to the solution obtained when the feasible probability is neglected.

Subnational carbon flow pattern analysis using multi-scale input-output model

As the largest carbon emission country, China is struggling with the carbon outsourcing problem at inter-provincial and international scale. Identifying the role of each provincial region is helpful for mitigation adaptation policy by local government. Based on the Multi-Scale Input-Output model (MSIO), the characteristics of subnational carbon flow pattern embodied in domestic and international trade for China in 2010 are analyzed in a global economy system. Results show that the net export of emissions for the whole of China was 903.4 MtCO2e. Due to regional heterogeneity in economic development and natural resource endowments, different subnational regions present multi-carbon flow patterns categorized into resource supplier (where outflow is greater than inflow, such as Inner Mongolia), self-sufficient type (where local consumption ratio is greater than 50%, such as Qinghai), consumer (where inflow is greater than outflow, such as Beijing), as well as trade hub center and final producer (where both inflow and outflow are large, such as Jiangsu). This study lays a foundation for emission reduction responsibility division and regional mitigation cooperation at subnational scale. Targeted policies implications at subnational scale are recommended for each type accordingly.

Risk and Benefit of Outsourcing in Southern Part of Ethiopia: A Case of MAA Garment and Textile Factory

The main objective of this study is to assess the perceived and existed benefits and problems of outsourcing on two outsourced functions of the organization. To select respondents for this study purposive sampling were used. The collected questionnaires were analyzed by using Statistical Package for the Social Sciences (SPSS) computer program. As result of the study indicated both outsourced functions brought many benefits to the organization. The most important benefits are focus on core activities, Cost and efficiency saving, continuity and risk management and operational control. Hence, the managers of the organization have gotten relief on following the routine problems which is related to noncore activities. On the contrary, the factory faces little challenges which can easily avoided, these are Loss of managerial control, Bad publicity and Tied to the financial well-being of other company.

Terceirização da Educação Física no ensino básico

É perceptível, na atualidade, a crescente terceirização ocorrente em escala global, e no Brasil, com as novas regulamentações trabalhistas, quase todos os serviços podem ser executados por trabalhadores terceiros. Este ensaio é assentado na seguinte indagação: quais os aspectos e os possíveis problemas da terceirização na Educação Física Escolar? O objetivo do estudo ora sob relato foi analisar o expresso fenômeno e sua relação com a disciplina pesquisada, identificando as características e refletindo sobre os possíveis desdobramentos no cotidiano das práticas pedagógicas. Optou-se por uma pesquisa em uma grande unidade de ensino da rede privada de Feira de Santana, maior cidade do interior do Estado da Bahia. Identificaram-se algumas características da terceirização da Educação Física Escolar, dentre as quais não ter status como disciplina pertencente ao currículo básico, inexistência de interdisciplinaridade, ausência de professores de Educação Física das reuniões pedagógicas, dentre outras características.

Проблеми аутсорсингу персоналу та напрями їх вирішення

Проблеми аутсорсингу персоналу та напрями їх вирішення

Optimization for transportation outsourcing problems

In this study, we consider a transportation outsourcing plan for deciding on the number of self-run and outsourced trips under stochastic demands. This is an extension of previous work with limitations in terms of computation time and solution accuracy, which restricted it to the solution of problems with small dimensions. This weakness is overcome by the use of two decomposition concepts and trip-adjustment, resulting in four heuristic methods to solve the problem. In addition to the theoretical development of the solution method, the other benefit is that it can practically be applied to the studied carrier, which is expanding its business, or to other large-scale carriers. Finally, we compare the performance of these methods for several instances, showing the different characteristics of the solution methods. The test results demonstrate the applicability of the proposed methods to the solution of large-scale problems.

A dynamic model of strategic outsourcing with emphasis on human resources and work experience in power industry of Iran

Purpose The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their organization. Outsourcing is increasingly being used among Iranian companies in the field of the electric power industry. Human resources are among the factors that consider outsourcing as an obstacle for their growth because staffs declare that the development of outsourcing is a serious threat for unemployment of them and ultimately expulsion from work. Thus, this study surveys the dynamic effects of human resources and work experience on outsourcing decisions. This paper aims to propose a model for dynamic strategic outsourcing focusing on human resource and work experience. Design/methodology/approach Presenting a model for strategic outsourcing can help organizations to resolve their outsourcing problems. The data needed for examining the dynamic impact of human resources and work experience on outsourcing have been compiled using library and field studies. The method used in this study is an integrated approach, so the model could consider the general effects of manpower and present a systematic view. After interviewing with experts in power industry, the causal relationships of the variables were determined, and a dynamic model based on the applications of the dynamic system was developed in VENSIM software. The research model will be completed in a three-year period (2016-2019) in the power industry of Iran. Findings For completing projects in an organization, cooperation between internal employees and external contractors is needed; thus, results based on both external contractors and internal staff have shown that outsourcing through working of a number of contractors will be more effective than frequent use of one contractor. On the other hand, improving the quality of projects could be done by training new employees using skilled and expert employees. Originality/value Existence of one-dimensional models (only with qualitative factors or only with quantitative factors) in the context of outsourcing in the past studies has prompted to study different types of factors together as a dynamic model. This paper presents a quantitative and qualitative model in the field of strategic outsourcing with emphasis on human resources and work experience. In the past studies, there was no way to formulate the qualitative factors, and they simply used the data from the organization, and the only formulation in their works was based on quantitative factors. But in this study, both factors with dynamic modeling have been formulated.

Decision support system for outsourcing strategies

A decision support system (DSS) was conceptually developed to support the decision maker (DM) in classify the activities into core and non-core competencies, and to establish their outsourcing relationship. This DSS is recommended because companies have seen the outsourcing as an alternative for business survival in a competitive market. Thus, for each manufacturing process, the DM needs to be able to decide make or buy (MvB). For this, one approach used is the core competences analysis. However, this evaluation is not trivial because it usually involves several factors. Moreover, pre-fixed scales are common, and it increases the cognitive effort of DM. Therefore, the proposed DSS was able to simplify the outsourcing problem, reducing the cognitive effort required, and giving to the DM a better recommendation according to his/her preferences. A manager can use this DSS to improve his/her understand about the company’ core competencies and, then, to make a final decision.

Secure and Verifiable Outsourcing of Large-Scale Nonnegative Matrix Factorization (NMF)

Nowadays, cloud computing platforms are becoming increasingly prevalent and readily available, providing alternative and economic services for resource-constrained clients to perform large-scale computations. This work addresses the problem of secure outsourcing of large-scale nonnegative matrix factorization (NMF) to a cloud in a way that the client can verify the correctness of the results with small overhead. The protection of the input matrix is achieved by a random permutation and scaling encryption mechanism. By exploiting the iterative nature of NMF computation, we propose a single-round verification strategy, which can be proved to be quite effective. Theoretical and experimental results are provided to show the superior performance of the proposed scheme.

Outsourcing Property Management? An Evaluation of the Rationales and Motivations

This paper investigates the operation of outsourced property management delivery. Drawing upon semi-structured interviews with senior professionals responsible for property management outsourcing in Finland, Netherlands and the UK, it is found that the perceived advantages and disadvantages of outsourcing property management are broadly consistent with existing work on broader business process outsourcing. In particular, the ability to transfer fixed into variable costs and, so, to externalize operational risks were perceived as key advantages. In addition, due to the size of third party providers, it was possible to benefit from their economies of scale and to gain access to expertise in specific real estate sectors and specialisms. Arms-length relationships with third party providers, relatively short contractual periods and service level agreements are perceived to facilitate more formal quality assurance and performance monitoring procedures. Cost savings did not emerge as a key issue in the property management context but a recurring theme was the trade-off between cost and service quality and the need to maintain the latter in the context of pressures to obtain operational efficiencies. Common outsourcing problems such as information leakage and loss of control of the customer relationship also emerged from the research.