Thesis: Outsourcing Operations

Sample Thesis Paper

Outsourcing operations once put into place can be expected to last a considerably long duration; at the end of which the company will have the option of either rolling back its operations from the outsourcing agent into its boundaries, or to continue its business relationship with the outsourcing agent. Under normal circumstances, the contract spans an elongated period of time, after which the business relationship between the two parties is terminated and the terms of the contracts is renewed and re-evaluated (Linder, 2004).

In this regard, it is necessary for the organization to forecast its position at the time of the settlement of the contract with the outsourcing agent. The forecast has to take into account whether or not the company will be in a condition to once more make its formerly outsourced operations a part of its internal processes. Prospective costs that would be incurred in this regard should be evaluated to ascertain the financial burden that the company will have to face if it fails to fully satisfy its targets by the end of its outsourcing. For instance, an example can be found in the simulation graph given below which show the profits from the outsourcing process in opposition to the costs associated with reintegration of the outsourced process over a long term outsourcing deal.

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