Optimizing Outsourcing: Best Practices for Successful Project Delivery

This presentation provides an overview of best practices in outsourcing projects, highlighting six key areas: properly defined procedures and requirements, extensive team building and training activities, established processes of conflict management, status updates and frequent review, co-location when required, and intensive laden and fair contracts. It emphasizes the importance of clear deliverables, technical specifications, and mutual understanding between the organization and the outsourced company. Team building is crucial for cooperative work, and conflict management is essential due to differing opinions. Regular status updates and reviews, along with co-location when necessary, facilitate timely problem resolution and communication. The presentation also underscores the significance of fair, performance-based contracts to encourage improvement and innovation. The references section lists several academic sources that support the concepts presented.

Best practices in
outsourcing project

Introduction and Six practices of outsourcing
Outsourcing is used
by numerous
organizations.
It provides ability to
deliver works to
people.
Support all the work
days (Brinkkemper
and Janse 2016).
Properly defined
procedures and
requirements.
Extensive team building
and training activities.
Established processes of
conflict management.
Status updates and
frequent review.
Co-location when
required.
Intensive laden and fair
contracts.Picture 1: Outsourcing
(Source: Ahmed, M.N., 2018, p. 98)

Properly defined procedures and requirements
Works that have clear deliverables are
usually outsourced.
Technical requirements are properly
mentioned with details.
The outsourced company must understand
the requirements before starting with the
task.
Picture 2: Requirements are important for project
outsourcing
(Source: Erdogmus, Czermak and Baumsteiger
2018, p. 234)

Extensive team building and training activities
Extensive team building should be carried
out before outsourcing.
Team building would help employees to
work in a cooperative manner.
People issues are more important than
technical issues.
Picture 3: Outsourcing
(Source: Ahmed 2018, p. 29)

Established processes of conflict management
Conflict is a common issue in outsourcing.
Conflict occurs because people have
different opinions and perspectives
(Erdogmus, Czermak and Baumsteiger
2018).
Conflict management is an important part
of outsourcing.
Picture 5: ways of conflict management
(Source: Ahmed 2018, p. 98)

Status updates and frequent review
In this practice timely problem resolution,
team work and communication are evaluated.
Comparing the surveys time to time
(Nduwimfura and Zheng 2015).
Reviews should be obtained from employees.
Picture 6: receiving review from employees is
important
(Source: Nduwimfura and Zheng, 2015, p. 98)

Co-location when required
Co-location can be carried out whenever it is
required by the organization or specific tasks.
This practice allows organizations to carry
out face to face interaction (Oshri, Kotlarsky
and Willcocks, 2015).
Does not need coordination among
professionals from numerous organizations.
Picture 6: collocation
(Source: Ahmed 2018 , p. 98)

Intensive laden and fair contracts
Fair contracts should be followed by
organizations.
Performance based contracts where incentives
are included are popular (Schniederjans,
Schniederjans and Schniederjans 2015).
Companies realize that contracts have the
ability to discourage improvement as well as
innovation.

References
Ahmed, M.N., 2018. Outsourcing relationship management: accounting in the
decision mix. Journal of Business Strategy, 39(5), pp.41-49.
Brinkkemper, S. and Jansen, S., 2016. Collaboration in outsourcing: A journey
to quality. Springer.
Erdogmus, T., Czermak, M., Baumsteiger, D., Kohn, D., Boller-Hoffecker, A.,
Schmidt, N. and Linden, R., 2018. How to support clients and vendors in IT
outsourcing engagements: the different roles of third-party advisory
services. Journal of Information Technology Teaching Cases, 8(2), pp.184-191.
Nduwimfura, P. and Zheng, J., 2015. A Review of Risk Management for
Information Systems Outsourcing. International Journal of Business,
Humanities and Technology, 5 (4), pp.28-33.
Oshri, I., Kotlarsky, J. and Willcocks, L.P., 2015. The Handbook of Global
Outsourcing and Offshoring 3rd Edition. Springer.
Schniederjans, M.J., Schniederjans, A.M. and Schniederjans, D.G.,
2015. Outsourcing and insourcing in an international context. Routledge.