OUTSOURCING DECISION

Outsourcing Decision

Student’s Name

Institution’s Name

Date

Outsourcing Decision

Steps for Evaluating Outsourcing Decisions

The decision of outsourcing is critical decision that should be made with sufficient knowledge to ensure that the organization does not fail in its operations. The business will look into before making the various decision steps. The first one is cost management. Cost is a central factor that ensures that business focuses on making profits rather than losses and evaluates the various outsourcing ventures to determine whether they will achieve the desired goals.

Secondly, communication management will come into play. Communication channels are essential to ensuring the success of the business. The business, as a result, should ensure that the communication channels are properly established between the outsourcing parties, which will help answer any questions that the company needs to know from the service provider (Zimmerman, 2012). Communications support the business to interact and give explicit details on what they need, and thus effective communication channels ensures that the whole outsourcing work is correctly done.

Thirdly, the business should focus on performance management of the service provider. As such, the party the service provider should maintain the timeframe of the project and the quality. The client, therefore, should be in a position to monitor the quality of the service, deadlines and further hold the service provider accountable. Fourthly, the company should look at risk management. Both parties should thus have a complete analysis of the outsourcing process and point out various risks that are associated with the outsourcing.

Fifthly, the business should look at crisis management. Any crisis that may occur either on both sides of the outsourcing parties should be analyzed to determine the continuity of the project. An efficient and effective service provider can reduce the incidence of crisis management. Transfer of knowledge is the sixth step. Both parties should prepare to transfer knowledge consistently and openly that will increase productivity and quality of the work outsourced. Relationship management is essential to ensure that the work outsourced carries on successful. Relationships can thus be strengthened by flexibility, constant communication, and transparency between both parties. All the steps will be the company to greatly and in detail understand the whole outsourcing process and thus have an understanding of the outsourcing venture to make an important decision (Triantaphyllou, 2013).

Prescriptive decision

The prescriptive decision-making process is far more important in this case, as it borrows significantly and dwells on the premise that people should concentrate on what should be done and that can be done (Rios, 2012). The decision-making process will thus assess the risks, certainty, and uncertainty that can be associated with the project to come up with a decision. In basing on the various components of the decision, the process is made knowledgeably especially by theory and hence the business is in a better position to make a decision. As such, the decision-making process dwells on information while the descriptive process dwells on consistent rules and assumptions that may not work out to the advantage of the company in the end.

Critical Thinking Skills

Critical thinking encompasses various skills that help one make a reasonable and decision (Manktelow, 2012). Various skills that will help significantly to make the decisions are self-regulation, interpretation, observation, evaluation, inference, analysis and explanation. The organization, therefore, has to employ critical thinking skills to understand the whole outsourcing process and make a concrete decision on behalf of the company. As such, it will not only have made a knowledgeable decision but also a reasonable critically thought decision.

References

Manktelow, K. (2012). Thinking and reasoning: An introduction to the psychology of reason, judgment and decision making. Psychology Press.

Ríos, S. (Ed.). (2012). Decision theory and decision analysis: trends and challenges. Springer Science & Business Media.

Triantaphyllou, E. (2013). Multi-criteria decision making methods: a comparative study (Vol. 44). Springer Science & Business Media.

Zimmermann, H. J. (2012). Fuzzy sets, decision making, and expert systems (Vol. 10). Springer Science & Business Media.