Prepare a Response
As a consultant specialising in sourcing and outsourcing consider how you would respond to the statement, question and situation presented below...
Please post your comments in the comment form below.
Statement
Outsourcing is such a bad idea. The supplier simply wants to make profit. The buyer will make loads of mistakes and get shafted. So don’t do it. Its just a bandwagon!Question
Formal criteria for selecting external suppliers are used in about one third of outsourcing decisions. Should formal criteria be used?Situation
We are all members of the Management team in a large company employing 900 people here in Ireland. There are 18 people employed in the HR Department. Our Chief Executive has been to lunch with a friend who runs another large company employing 1,100 people. The friend has just made a decision to outsource his HR function (including payroll). There are two possibilities for outsourcing – one is with a company here in Ireland and the other is with a company based in Bermuda. The Chief Executive is keen on the idea and has nominated two people to “fulfill his wishes”. Let’s discuss the approach / issues involved here.Acknowledgements: Questions/statements posed by Michael McCabe (mvmconsult.com)
