Description

 

SESSION	JUL – AUG 2024
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	III
COURSE CODE & NAME	DSCM302 OUTSOURCING

 

 

Assignment Set – 1

 

1. A company is considering outsourcing its customer support and parts of its supply chain management to a Business Process Outsourcing (BPO) provider to reduce costs and focus on its core competencies.
2. a) Analyze the potential benefits and risks of this decision with a focus on strategic alignment between customer support and supply chain management outsourcing.
3. b) Suggest a plan to mitigate at least two major risks identified, and explain how this plan could improve the alignment with the company’s long-term strategic goals.
4. c) Explain one unique challenge that could arise in this outsourced arrangement, which traditional risk management frameworks might overlook

Ans 1.

1. Benefits and Risks of Outsourcing Customer Support and Supply Chain Management

Outsourcing customer support and supply chain management can bring several benefits. Firstly, it allows the company to focus on its core competencies, improving efficiency and innovation in key areas. Cost reduction is another significant benefit, as outsourcing often lowers labor and operational expenses. Furthermore, outsourcing to a specialized Business Process Outsourcing (BPO) provider can enhance service quality through access to advanced technology and skilled personnel. Additionally, it provides flexibility and scalability to adapt to market changes swiftly.

However, outsourcing also comes with risks. A key concern is the potential loss of control

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2. Assume your organization has been presented with two outsourcing options to improve operational efficiency and cut costs: Option A is a low-cost offshoring strategy, while Option B is a higher-cost, technology-driven local outsourcing strategy that offers integration into the latest supply chain technology.
3. a) Evaluate the value models of both options by comparing potential short-term and long-term benefits, including any hidden values that might not be apparent in a financial analysis. (5 Marks)
4. b) Recommend one option and justify your choice by analyzing how it aligns with evolving market-driven decision-making and customer expectations. 5+5

Ans 2.

1. Evaluation of Value Models for Offshoring and Local Outsourcing

When considering Option A, a low-cost offshoring strategy, the primary value lies in immediate cost savings. Offshoring typically reduces labor and operational expenses due to lower wages in foreign markets. This option also provides access to a broader talent pool, which can enhance operational capacity. However, potential hidden values include increased flexibility in scaling operations and exposure to diverse markets that could inform global

 

 

3. Your company is planning to offshore a significant portion of its supply chain functions to a low-cost country. During initial planning, you uncover potential risks related to political instability and workforce skill shortages that could impact operations.
4. a) Identify and explain two unconventional risk factors specific to the cultural and political environment that could uniquely impact offshoring operations. (3 Marks)
5. b) Propose an adaptive framework that could help the company manage these risks while remaining flexible in its offshoring model. (4 Marks) 5+5

Ans 3.

1. Unconventional Risk Factors in the Cultural and Political Environment

Cultural Divergences in Business Practices and Communication Cultural differences can pose significant challenges in offshoring operations. Variations in work ethics, decision-making styles, and communication preferences may lead to misunderstandings, misaligned expectations, and inefficiencies. For instance, a culture that prioritizes hierarchy and indirect communication may struggle to adapt to a company’s preference for open and collaborative

 

 

 

 

Assignment Set – 2

 

 

4. You are tasked with leading an outsourcing project for a company that plans to outsource its logistics management to improve supply chain efficiency.
5. a) Outline the key roles you would include in your outsourcing team, explaining the unique contributions each role would bring to the success of this outsourcing project. (
6. b) Describe the qualities and competencies required of the Outsourcing Project Leader for this particular project. Provide examples of specific challenges they might face and how these qualities would enable them to address these challenges.
7. c) Identify one potential conflict that could arise within the outsourcing team and suggest a strategy to resolve it constructively.

Ans 4.

1. Key Roles in the Outsourcing Team

Project Manager The Project Manager oversees the entire outsourcing initiative, ensuring timelines, budgets, and objectives are met. They coordinate among team members, manage resources, and address bottlenecks to keep the project on track. Their ability to plan and execute efficiently is crucial for achieving supply chain efficiency.

Logistics Expert A Logistics Expert provides domain-specific knowledge to evaluate and

 

 

5. Consider a scenario where your company has opted for an alternative approach to the traditional Request for Proposals (RFP) in selecting an outsourcing provider. Instead, the company is using a collaborative, scorecard-driven approach to assess potential providers based on competencies, relationship dynamics, and long-term adaptability.
6. a) Discuss the potential advantages and disadvantages of moving away from a standard RFP approach for this outsourcing decision. (3 Marks)
7. b) Create a sample scorecard with three unique evaluation criteria (not commonly found in standard RFPs) that your team might use to select an outsourcing provider. Explain why each criterion is critical to building a successful long-term partnership.

Ans 5.

1. Advantages and Disadvantages of Moving Away from a Standard RFP Approach

Advantages

• Enhanced Collaboration: A collaborative, scorecard-driven approach fosters direct interaction with potential providers, enabling better understanding of their operational strengths and cultural alignment with the company.
• Comprehensive Evaluation: Unlike standard RFPs, which focus heavily on cost and technical capabilities, this approach considers relationship dynamics and long-term adaptability, which are crucial for sustainable partnerships.
• Flexibility: The scorecard approach is less rigid than an RFP, allowing for real-time

 

 

6. A company is considering outsourcing its customer relationship management (CRM) to enhance customer satisfaction and loyalty. Although CRM outsourcing will entail measurable cost savings, the company expects most benefits to be intangible, such as improved brand reputation and customer experience.
7. a) Propose a method to forecast intangible benefits for this CRM outsourcing project, detailing steps to capture and quantify these anticipated outcomes.
8. b) Suggest an approach to convert these intangibles into tangible measures post-implementation. Provide an example to illustrate this conversion process.

 

Ans 6.

1. Method to Forecast Intangible Benefits of CRM Outsourcing

To forecast intangible benefits, a structured method combining qualitative and quantitative approaches can be applied:

Stakeholder Input Analysis Engage key stakeholders, including marketing, sales, and customer support teams, to identify potential intangible benefits. Conduct workshops or surveys to gather insights into how CRM outsourcing might enhance customer experience, satisfaction, and brand reputation.

Customer Journey Mapping Analyze the customer journey to pinpoint touchpoints where