Thesis: Planning Stage of the Outsourcing Process

Sample Thesis Paper

This paper will seek to shed light on the planning stage of the outsourcing process with regard to the outsourcing of the production of parts in a helicopter manufacturing company.

The paper asserts that simply having a large organization no longer provides businesses with the competitive advantage needed to survive in the modern day hyper competitive global market. Small business can engage in specialization and can have a considerable influence on the cost structures in the industry. Competition has taken on a global form and is driven by globalization as a result of the increased value of information and knowledge (Rebernik & Bradac, 2006). As a result, companies are forced to engage in out-of-the-box business strategies in order to ensure that they retain their competitive advantage. One such business strategy is that of outsourcing.

“Today, the outsourcing of selected organizational activities is an integral part of corporate strategy. Historically, third party participation in a company’s business has generally focused on the manufacture of parts and components and the provision of auxiliary services such as legal and travel services” (Lankford & Parsa, 1999).

When outsourcing the production of parts, the factor of cost saving seemingly comes across as the as the most important one to consider and it is not uncommon to find businesses making the mistake limiting the scope of their outsourcing feasibility reports to the costs that will be saved as a result of the outsourcing process. However, modern day business requirements have grown far more complex and demanding in nature. A decision to engage in outsourcing can no longer be taken simply by evaluating the saved costs. ÔÇťOrganizations fail to realize the impacts on their people, processes, methods and tools as they proceed down the outsourcing path.

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