Browse MBAs SECTION 7: Operations & Supply Chain Management

The Outsourcing Decision Analyzer

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The Outsourcing Decision Analyzer

Analyse whether to outsource this function/activity.

The activity: [DESCRIBE]
Current in-house cost and performance: [DESCRIBE]
Outsourcing option: [PROVIDER, COST, TERMS]
Strategic importance: [CORE / NON-CORE, IP/QUALITY SENSITIVITY]

Analyse:
1. The real cost comparison (including management, transition, and hidden
   costs)
2. Whether this is core (keep) or non-core (candidate to outsource)
3. The quality, control, and IP risks of handing it over
4. The flexibility gained vs the capability lost
5. A recommendation and, if outsourcing, how to structure it to keep
   control

Warn me against outsourcing something that's actually a source of
competitive advantage.

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