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High Performance, Essay Example

Pages: 2

Words: 552

Essay

There are many issues to consider when outsourcing a project. Many companies pride themselves on high performance, and it is not always controllable when someone else is responsible for the outcome. Companies seek to save money and outsourcing jobs is one of the most common ways to do that. Acknowledging the potential for issues to arise and finding ways to reduce or eliminate problems before the deadline is key for the company to have success with outsourcing. Issues with outsourcing are inevitable, however using precautionary and prevention methods during the project will ensure the highest performance outcome with the outsourced project.

The possibility of issues arising is high when it comes to outsourcing a project. This is something that project managers need to address prior to them creating a potentially costly problems. The three main issues that can effectively be managed in outsourcing contract and supplier performance risks are: “Supplier performance and Compliance; Assignment of company and supplier roles; and Establishment of the performance feedback loop and controls.” (Managing the Risk, 2013) These are typically standards that are enforced within the company, however when the company has no control over these factors it is important to create a way to monitor these.

Supplier performance and compliance is a very important part of outsourcing. Companies create a name for themselves based on quality and customer service. This name can be tarnished if the outsourcers do not find the same importance of quality. Assignment of company and supplier roles is also important. The product being manufactured or outsourced is still a part of the bigger picture. This means that the company that is doing the outsourcing does not have the option to pick their own suppliers based on their relationships or desire to find cheaper product. The outsourcing company has to set the specifications in this area. And finally, establishment of the performance feedback loop and control. By addressing these areas that carry a high potential of risk, it will help with project completion.

Because outsourcing can be a risk it is important to find ways to reduce or eliminate the potential for this problem before or during the project. According to the book, the following are well-defined procedures and requirements for outsourcing:

  • investing in extensive training and inter organizational team-building activities;
  • establishing conflict management processes before the project begins;
  • engaging in frequent review on how well the different parties are collaborating;
  • insisting on co-location of participants when needed;
  • using fair and incentive-laden contracts; and
  • establishing long term outsourcing relationships with reliable partners.

Issues with outsourcing are inevitable, however using precautionary and prevention methods during the project will ensure the highest performance outcome with the outsourced project. Managing the project does not mean the company has to be present every day. By continually utilizing options like following-up, required training, and fair incentives, it will provide a means of motivation for the employees to comply with the requested specs of the project. Waiting till the project is complete to follow up is not a resourceful method to ensure that quality in outsourcing is utilized. The company does not have to be manufacture their own products to guarantee the desired quality is obtained, by implementing and following up, the company can outsource a project and get the desired outcome.

References:

Unit VI Study Guide Outsourcing and Managing Teams. (2013)

Managing the Risk of Outsourcing. (2013) Retrieved from http://www.protiviti.com/en- US/Documents/Surveys/ManagingOutsourcingRisks.pdf

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