Thesis: The Make-Or-Buy Decision in Outsourcing

Sample Thesis Paper

The paper served to show that outsourcing is a highly productive but highly complicated exercise when considered in the context in question. It was observed that the helicopter company will have to engage in the evaluation of numerous key areas in ascertaining whether or not it should engage in the outsourcing of the production of its parts or manufacture them itself.

There is no doubt that outsourcing is also commonly brought into use by new businesses on account of the low cost exposure that it provides. However, to measure a larger organization by the same approach would be to forego otherwise accessible opportunities. While outsourcing may provide a small organization with a feasible outlook through cost cutting, a larger organization may be able to generate larger profits by stepping out of outsourcing and taking its operations in its own control.

It can be inferred, with consideration of the above presented discussion, that it would be more effective for the company to make its own parts. This is because of the fact that the risks involved in outsourcing in the case of the production of the helicopter are far too many. In addition, the product in question is not a simply vehicle but is an aircraft, thereby increasing responsibility and liability. The scenario therefore calls for an enhanced degree of continuous monitoring and evaluation of the parts produced; one that cannot be trusted to be fully present if an outsourcing agent was contracted to produce the parts. While there is no doubt that the production of the parts through an outsourcing agents will reduce costs and obstacles such as those highlighted above can be managed through management models, one cannot deny that expecting the same degree of efficiency from the outsourcing agent that the company would otherwise exercise itself would be to hold unrealistic expectations from the outsourcing procedure.

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