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About this document
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- 9 pages
- Price
- $9 one-time, yours to keep
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- Format
- Subject
- Business, Management
- Module
- PROJ410 · Week 2
This case study looks at ABC Marketing Services, which is considering outsourcing some of its non-core business processes. It discusses the reasons for outsourcing, the potential benefits, and the performance metrics that would be used to evaluate the success of the outsourcing agreement. It is for Week 2 of the PROJ410 course.
What's inside
- Company background and structure
- Core and non-core business functions
- Reasons for outsourcing customer services
- Benefits of outsourcing customer services
- Performance metrics for outsourcing agreement
- Types of contracts for outsourcing
Who it is for: Students taking the PROJ410 course. (Undergraduate)
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Summary
Business processes to outsource are discussed using a case study of ABC Marketing Services. Students learn about the company's background and the steps it takes to outsource non-core functions.
Company Background
ABC Marketing Services offers marketing and e-commerce solutions to clients worldwide. The company has several departments, including operations, sales, IT, and customer services.
Core and Non-Core Functions
Core functions include operations, sales, IT, finance, and human resources. Non-core functions are not listed but are considered for outsourcing.
Customer Service Outsourcing
Outsourcing customer service can convert fixed costs to variable ones. Performance metrics and penalties should be included in contracts.
Contract Types and Supplier Evaluation
Fixed-price contracts may not suit variable call volumes. Supplier evaluation involves criteria like price, experience, and financial stability.
Key terms
- Outsourcing
- Transferring non-core business functions to external suppliers.
- Core functions
- Essential business activities that a company focuses on.
- Non-core functions
- Supporting business activities that can be outsourced.
- Performance metrics
- Measurable standards used to evaluate outsourcing suppliers.
- Fixed-price contract
- A contract where the buyer pays a set price for goods or services.
- Request for Proposal
- A document that describes the function to be outsourced and invites suppliers to submit proposals.
Questions this document helps with
- What are the benefits of outsourcing customer service?
- How does a company evaluate potential outsourcing suppliers?
- What should be included in an outsourcing contract?
Summary written with AI from the document's text.
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