Outsourcing – A Management Technique...

Outsourcing – A Management Technique   Outsourcing is a usual practice among different organizations and is a one of the element of the organizational strategy.  Most of the organizations these days outsource some of the functions they used to perform themselves. Outsourcing is when any operation or process that could be (or would usually be) performed in-house by the organizational employees is sub-contracted to another organization for a substantial period. The outsourced tasks can be performed on-site or off-site. By outsourcing, the organization uses third parties to perform noncore activities of the organization. Contracting third parties enables the organization to focus its efforts on its core competencies. Third parties that specialize in an activity are likely to be lower cost and more effective, given their focus and scale. Through outsourcing, the organization can access the state of the art in all of its operational activities without having to master each one internally. The concept of outsourcing came from the American terminology ‘outside resourcing’, meaning to get resources from the outside. The term was later used in the economic terminology to indicate the use of external sources by an organization for some of the activities in its functioning. As per James Brian Quinn of The Outsourcing Institute, outsourcing started with organizations outsourcing physical parts. Now the big shift has been to outsource intellectually based service activities like research, product development, logistics, human relations, accounting, legal work, marketing, logistics, and market research. If an organization is not best-in- world in doing something and is doing it in-house, then it is giving up the competitive edge. In such a case the organization can outsource to the best in the world, up the value, and lower the cost. There are three major categories of motivations for outsourcing namely...

Process Management

Process Management  Process management is a concept which is based on the observation that each product that an organization provides to the market is the outcome of a number of activities performed. Processes are the key instrument for the  organization of these activities and for improving the understanding of their interrelationships. The organization can reach its goals and objectives in an efficient and effective manner only if people and other organizational resources play together well. Processes are an important concept for facilitating this effective collaboration. Process can be defined as a set of horizontal sequence of interrelated or interacting activities, which transforms inputs (needs) into outputs (results) for meeting the needs of customers or stakeholders. Inputs and intended outputs of a process can be tangible (such as equipment, materials or components) or intangible (such as energy or information). Outputs can also be unintended, such as waste or pollution.  Each process has customers and other interested parties (who may be either internal or external to the organization), with needs and expectations about the process, who define the required outputs of the process. Process activities require allocation of resources such as people and materials. Processes are strategic, operational and supportive. Process components are sub process, activity and task. Processes  have owner and team members. Processes are considered to be a generic factor in the organization. They are the way things get done. they are also viewed as strategic assets, which require the organization to take a process orientation. A major advantage of the process approach, when compared to other approaches, is in the management and control of the interactions between these processes and the interfaces between the functional hierarchies of the organization. Common examples of processes include new product development, order fulfillment, and customer service; less...