2: Introduction to Outsourcing
- Page ID
- 48536
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)From Strategy to Execution in Global Partnerships
Outsourcing today is a strategic tool for agility, not just cost-cutting. Section 2 reframes outsourcing by exploring why companies outsource, who performs the work, and how these choices shape operations. Real-world case studies like Walmart and Boeing reveal how outsourcing can drive efficiency—or spark setbacks. The section then guides you through the entire procurement lifecycle: crafting strategy, writing SOWs and RFPs, evaluating vendors, negotiating contracts, and managing performance. You’ll gain practical skills and a strategic mindset, treating procurement as a core project management discipline. By the end, you’ll be ready to lead successful global sourcing efforts from start to finish.
- 2.1: Outsourcing – What It Means Today
- This page explores the modern concept of outsourcing through a strategic lens, examining who performs the work, why organizations choose to outsource, and how these decisions impact efficiency, cost, and organizational structure.
- 2.2: The Procurement and Solicitation Process
- Master the full procurement lifecycle—from strategy and documentation to vendor evaluation, contracting, and closure—to ensure outsourcing success through structured, strategic, and professional procurement practices.
- 2.2.1: Procurement and Solicitation – The Work Before the Work
- 2.2.2: Step 1 - Procurement Strategy – Laying the Groundwork
- 2.2.3: Step 2- Establish Requirements – Getting the Documentation Right
- 2.2.4: Step 3- Statement of Work (SOW) – Defining the Relationship
- 2.2.5: Step 4- Request for Proposal (RFP) – Finding the Right Fit
- 2.2.6: Step 5- Vendor Response Evaluation – More Than Numbers
- 2.2.7: Step 6- Contract Negotiation and Signing – Setting Legal Ground Rules
- 2.2.8: Step 7- Monitoring and Control – Staying in the Loop
- 2.2.9: Step 8- Contract Management and Closure – Delivering and Wrapping Up
- 2.2.10: Deliverables from the Procurement Process
- 2.2.11: Final Thoughts- The Project Manager’s Role in Procurement
- 2.3: Case Study
- Dive into a hands-on case study of the Reckon Project. Learn how to plan, justify, and execute outsourcing through guided tools: SWOT, Make-or-Buy, contracts, vendor selection, risk planning, and final reflection—culminating in a professional project submission.
- 2.3.1: Planning for Outsourcing
- 2.3.2: Initiation- Exploring Outsourcing Options for the Reckon Project
- 2.3.3: Plan of Attack- Making the Case for Smart Outsourcing
- 2.3.4: Planning for Outsourcing – Student Workbook
- 2.3.4.1: SWOT Analysis for Outsourcing Justification
- 2.3.4.2: Make-or-Buy Analysis
- 2.3.4.3: Contract Type Evaluation
- 2.3.4.4: Supplier Selection Plan
- 2.3.4.5: Risk Management Plan
- 2.3.4.6: Reflection Questions and Lessons Learned
- 2.3.4.7: Submission Checklist and Final Assembly
- 2.3.4.8: Reflection and Final Submission