Outsourcing/Procurement Management

Outsourcing/Procurement
Management

Introduction
 Process where specific parts of
activities within an organization are
handed over to a different
organization.
 This is done due to lack of skilled
personnel (Lok, Opoku & Baldry,
2018).
 Outsourcing can be done for various
services
 Various companies outsource

Advantages of outsourcing
 Swiftness and
expertise
 Risk sharing
 Reducing
recruitment and
operational cost
Image 1: procurement
outsourcing
(source: (Kalra & Cousins,
2017)

Disadvantages of outsourcing
 Exposure of
confidential data
 Hidden costs
 Lack of focus within
customers
Image 2: process
outsourcing service
(source: White & James,
2017)