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Author: Murat Kaya
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper addresses the concept of quality risk in outsourcing. Recent trends in outsourcing extend a contract manufacturer's (CM's) responsibility to several functional areas such as research and development and design in addition to manufacturing. This trend enables an original equipment manufacturer (OEM) to focus on sales and pricing of its product. However, increasing CM responsibilities also suggest that the OEM's product quality is mainly determined by its CM. We identify two factors that cause quality risk in this outsourcing relationship. First, the CM and the OEM may not be able to contract on quality; second, the OEM may not know the cost of quality to the CM. We characterize the effects of these two quality risk factors on the firms' profits and on the resulting product quality. We determine how the OEM's pricing strategy affects quality risk. We show, for example, that the effect of noncontractible quality is higher than the effect of private quality cost information when the OEM sets the sales price after observing the product's quality. We also show that committing to a sales price mitigates the adverse effect of quality risk. To obtain these results, we develop and analyze a three-stage decision model. This model is also used to understand the impact of recent information technologies on profits and product quality. For example, we provide a decision tree that an OEM can use in deciding whether to invest in an enterprise-wide quality management system that enables accounting of quality related activities across the supply chain.
Author: Murat Kaya
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper addresses the concept of quality risk in outsourcing. Recent trends in outsourcing extend a contract manufacturer's (CM's) responsibility to several functional areas such as research and development and design in addition to manufacturing. This trend enables an original equipment manufacturer (OEM) to focus on sales and pricing of its product. However, increasing CM responsibilities also suggest that the OEM's product quality is mainly determined by its CM. We identify two factors that cause quality risk in this outsourcing relationship. First, the CM and the OEM may not be able to contract on quality; second, the OEM may not know the cost of quality to the CM. We characterize the effects of these two quality risk factors on the firms' profits and on the resulting product quality. We determine how the OEM's pricing strategy affects quality risk. We show, for example, that the effect of noncontractible quality is higher than the effect of private quality cost information when the OEM sets the sales price after observing the product's quality. We also show that committing to a sales price mitigates the adverse effect of quality risk. To obtain these results, we develop and analyze a three-stage decision model. This model is also used to understand the impact of recent information technologies on profits and product quality. For example, we provide a decision tree that an OEM can use in deciding whether to invest in an enterprise-wide quality management system that enables accounting of quality related activities across the supply chain.
Author: Narasimha Paravastu
Publisher:
ISBN: 9781109879872
Category : Business
Languages : en
Pages : 254
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Book Description
Successful post-contract relationships determine whether an IT outsourcing project is fully successful, partially successful or a failure. The purpose of this study is to further the understanding of IT outsourcing relationships in the post-contract phase. This study adopts a social exchange theory perspective and examines the impact of trust in IT outsourcing vendor, various modes of trust and trustworthiness factors, perceptions of risk, perceptions of strategic salience and service quality on relationship quality and outsourcing success. Perceptions of trustworthiness of the vendor, and the various bases of IT outsourcing decision making such as institution-based trust, transference-based trust, calculative-based trust and the past experiences with the vendor and their impact on the trust in vendor are examined in an IT outsourcing context.
Author: Aye W. Omuso
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Chris Lonsdale
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 240
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Book Description
Key texts in managing outsourcing risks are outlined in this study along with a critical analysis of the operational tools and techniques which dominate academic/practitioner thinking.
Author: Marc J Schniederjans
Publisher: Routledge
ISBN: 131746334X
Category : Business & Economics
Languages : en
Pages : 230
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Book Description
Designed for upper-level undergraduate or graduate courses in production-operations management, management information systems, international business, and strategic management, this text focuses on concepts, processes, and methodologies for firms planning to undertake or currently involved in outsourcing-insourcing decisions. "Outsourcing and Insourcing in an International Context" is the only available text that includes coverage of the international risk factors associated with this strategy. The book presents a balanced view of the positive and negative aspects of outsourcing, and provides essential coverage of the fundamental techniques involved in any outsourcing-insourcing decision. In addition, it discusses the ethical ramifications of outsourcing for companies and governments around the world. Each chapter includes learning objectives, discussion questions, and sample problems. An Instructor's Manual, Test Bank, and PowerPoint presentation are available to teachers who adopt the text.
Author: Ian Tho
Publisher: Routledge
ISBN: 0750665742
Category : Business & Economics
Languages : en
Pages : 226
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Book Description
This book shows IT managers how to identify, mitigate and manage risks in an IT outsourcing exercise. The book explores current trends and highlights key issues and changes that are taking place within outsourcing. Attention is given to identifying the drivers and related risks of outsourcing by examining recently published and existing concepts of IT outsourcing. Founded on academic theory and empirical and quantitative information, this book: * Incorporates the complete risk identification and mitigation life cycle * Highlights the concept of core competency * Looks at motivating factors and working relationships of the buyer and supplier * Provides background to understand the risks as a result of 'human factors' as defined by the agency theory * Reviews the areas of risk that influence the decision to outsource the IT function * Examines the forces that determine the equilibrium in the risk profiles for the buyer and supplier
Author: Siddharth Jayanty
Publisher:
ISBN:
Category :
Languages : en
Pages : 188
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Book Description
Author: S. Brinkkemper
Publisher: Springer
ISBN: 0230362990
Category : Business & Economics
Languages : en
Pages : 593
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Book Description
Although IT outsourcing is nothing new, it remains surprisingly challenging for professionals. This book assists the IT professional in several areas of the outsourcing process: establishing outsourcing relationships, maintaining and managing the relationship, and finally governing outsourcing projects successfully.
Author: Georg Hodosi
Publisher: Springer
ISBN: 3030059251
Category : Computers
Languages : en
Pages : 43
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Book Description
This book addresses the buying organizations' perspective on risks, relationships and success factors for accomplishing a successful IT Outsourcing (ITO). Today’s landscape in ITO is complex and these perspectives are important in ITO and therefore there is still a need for it to be further explored. Furthermore the studies concerned the risks, relationships and success factors in ITO need to be extended in more large companies from different countries to better understand how we could improve the ITO in these companies. In order to address this issue the authors of this book have performed different studies that span about 10 years concerning the risks, relationships and success factors in ITO in large companies in Sweden. The authors have focused on both theoretical and practical aspects concerning risks, relationships and success factors in ITO and they have used transaction cost theory, agency theory and core competency theory as main theories to support their research. The data concerning this study has been collected at two different times during the last 10 years with about five years' difference between them. In this way the performed research has enabled a comparison of the data collected on two different periods in time including of the related changes. The book will help researchers in ITO as well as practitioners like ITO decision makers in large companies to understand how to mitigate the ITO risks, improve their ITO relationships and identify the ITO success factors.
Author: Johann Rost
Publisher: CRC Press
ISBN: 1000654656
Category : Business & Economics
Languages : en
Pages : 341
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Book Description
It is essential for a corporation to not only survive but thrive in today's global outsourcing environment. The Insider's Guide to Outsourcing Risks and Rewards is a comprehensive and accessible resource that assists an organization in deciding whether it will benefit from pursuing-or not pursuing-such an endeavor. The author, an 18-year ve
