The paper 'Outsourcing at the Ministry of Defense' is a wonderful example of a Management Case Study. In this report, outsourcing describes the process of sub-contracting non-core business activities to a service provider. Technology advanced and globalization has resulted in increased outsourcing practices among the public and private sectors. An organization may decide to outsource in order to reduce expenses, improve the quality of service delivery, increase flexibility, increase core competencies, and facilitate change. This report indicates the different types of outsourcing arrangements that the MoD can adopt. It’ s important to conduct a thorough evaluation and planning procedure before making decisions about outsourcing.
TUPE regulations are among the key laws that impact on outsourcing practices. The MoD employees have a right to transfer over to the outsourced service provider. But, the employees can decide to terminate their employment contract due to personal reasons. Decision making and selection of suppliers is the most critical task in outsourcing. Outsourcing has several risks such as delays, reduced quality of services, reduced productivity, and service interruptions. This report gives recommendations for the best outsourcing practices. 1.0.
IntroductionOutsourcing is the latest trend of managing non-core organizational activities. The increased level of globalization has compelled many corporations to adopt outsourcing practices. Technology advancement has enabled several companies to outsource business activities such as security services, research, and marketing, after-sales services product design and assembly (OECD 2007). The notable increase in the level of outsourcing services proves its popularity. The decision to outsource is primarily influenced by the quality of service rather than labor arbitrage. The major drive force for implementing outsourcing practices is the need to improve efficiency in the organization. Outsourcing benefits include reduced expenses, improved quality and service delivery, increased flexibility, and enhanced organizational focus (OECD 2007; Olsen 2006).
Also, outsourcing is a significant part of the value chain of business activities at any company or institution. Outsourcing catering and cleaning services will help the ministry of defense to concentrate on key business processes. However, the process of outsourcing can be complicated, and implementing the wrong strategies can reduce the performance of the ministry of defense.
Acas 2014, 2014 Changes to Tupe, Viewed on 5th February, 2016,
Andone, Ioan, et al 2010, Outsourcing the Business Services, Informatica Economică vol. 14, no. 1, University of Iasi.
Belcourt M. 2006. Outsourcing, The benefits and the risks, Science direct, Human resource management review, No. 16, pp 269-279.
CIPS 2013, Monitoring the Performance of Suppliers, sl.
Cluster, D 2006, Global It outsourcing study, Diamond Technology & Management Consultants, Inc, viewed on 6th, February, 2016,
Ertel, D & Enlow S 2012, Relationship management for outsourcing service providers, vantage partners.
Gilley, M & Rasheed, A 2000, Making more by doing less, analysis of outsourcing and its effects on firm performance, Journal of Management, 26 (4), 763-790.
Grimshaw, D, et al 2014, Coming clean, contractual and procurement practices, University of Manchester, Equality and Human Rights Commission.
Haveckin, B 2012, Information Technology Outsourcing By Large Australian Organisations. Faculty Of Business And Law, Victoria University, viewed on 6th February, 2016,
Jensen, P & Stonecash, R 2014, the Efficiency of Public Sector Outsourcing Contracts,
A Literature Review, Melbourne Institute Working Paper No. 29/04, ISSN 1328-4991.
Jones, P 2009, outsourcing, key Legal Issues and Contractual Protections, Farrer & co.
OECD 2007, Offshoring and employment Trends and Impacts, viewed on 5th February, 2016,
Olsen, K 2006, Productivity Impacts of Offshoring and Outsourcing, A Review, OECD Science, Technology and Industry Working Papers, 2006/01, OECD Publishing.
Ono, Y 2003, Outsourcing business services and the role of central administrative offices, Journal of Urban Economics, 53, 377-395
Zhou, Y & Ren, J 2010, service Outsourcing, Wiley & Sons, Inc.