Outsourcing: To Research or not to Research? Part1

  • April 13, 2011
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By JOHN YUVA

A barrage of research analyses on almost every form of outsourcing has been conveyed these past few years, since it started to be well-known as a very strategic business tool to boost competitive advantages and eventually became one of the major controversies for survival in the 90s. This is of no doubt. A large number of academics and practitioners alike have researched and analyzed such issues on how to manage the supplier’s performance, how to have these suppliers incentivized, advantages against liabilities, whether you are to have a long-term or short-term contract, and then single vs. multi-vendor approaches.

Though these findings can get inaccurate, we need to have in mind that the findings of these research studies are enabled to be intertwined by the self-serving establishments investing for the research. Having them not aiming at the same targets, those organizations’ perceptions normally paint the results. Oftentimes, the results coming from these studies and analysis contradict on the complicated issues in outsourcing. Now the question is, can we be convinced of the significance of a study as compared to something else? How are we to comprehend with the importance of outsourcing research?

Should we not focus on producing research studies that suggest a much broader overview?

Evolution Models

A study suggests that the research be done in two stages.

The first stage. It cites the client view. The research throughout this stage identified outsourcing as a systematical relationship and a win-lose strategy. Most of the research conducted at this time was overstatedly expectant due to the fact that it took place during the what you call “honeymoon phase” of relationships quickly after the contracts were agreed upon. Outsourcing did not always achieve the preferred results. About a few organizations though, prefered to reveal their outsourcing losses to the people, so many controversies throughout this stage were not defined matter-of-factly.

The second stage. It cited outsourcing issues coming from both the customer and vendor views. It promoted the foundation of a leveled relationship and a win-win strategy. It started with the attempt to account for the difficulties in making and managing gainful relationships. Buyers demanded long-term, collaborative relationships with their sellers. They opted for partnership alliances, over strict customer-vendor relationships. As the extent of the deals broaden, the service providers were eager to have much more responsibility.

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