Question

Questions from Wheelen, T., Hunger, J. Hoffman, A., & Bamford, C. (2018). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th ed. Pearson.

Chapter 8

Identify the common signs that indicate an outsourcing strategy is not executed effectively.

Answer 1

The solution of this problem would be.......

Warning Signs ☺ ☺ UNLEAR UNCLEAR AND UNTIMELY commUNICA- TION : Outsourcing projects sucess. is dependent on clear and direct communication. Regular update meeting phone calls and vidro conferencing nanswered calls, repeated unanswere ails, mis commenication due to language barrier is a clear sign of in effective execation. ② ENDLESS Excuses when the off- Shore partner starts making excuses for low productivity or missed deadlines

These kinds of vendors come up with endless excuses for non-delivery which is a clear indication of disorganisation and de motivation at the vendors end.. HIGH TURNOVER : Increase in attrition at your outsourced wendor is a sign of ineffective execution. This means that the vendor might either not be equiptted with adequate resources to complete the project or people are not happy working for that rendor (implying that the manag ادعای INCREASING COSTS: Occasional request for additional compensation for new Services is a good indication that the rendor is making it worth for your money. However, when the additional compensation request becomes frequent for the existing services, indicates that your off shore vendor who was initially awarded the project- due to low cost is now regain the cost by taking more money for services already agreed in the contract. SLA FAILURES SLA failures are indicative of deeper problems at their end like not adequately staffed as they are not managing resources effectively

INNOVATION APATHY In challenging and difficult times, if the der is not provi- able to bring ideas and solutions to the table, it is a warning sign. Abhishek Sharma (NP of pricing assurance with out sourcing consultancy Everest Group) said " Lack of investment or innovation may indicate that the provider has lost the will and intent to grow or even sustain - the relation ship. This could under worst circumstances point towards their willingness to lose the account). Other signs of ineffective executions are :- slower turn around time - lack of business and domain knowledge cultural barriers. anltural barriers language and time zone differences. - lack of control