Introductory description

This is an elective module available for WBS and non-WBS students.

This module focuses on outsourcing, offshoring and insourcing of professional services including examples from business process outsourcing (BPO), IT outsourcing (ITO), and Knowledge Process Outsourcing (KPO).

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

This course focuses on outsourcing, offshoring and insourcing of professional services including examples from business process outsourcing (BPO), IT outsourcing (ITO), and Knowledge Process Outsourcing (KPO). The course covers two broad areas: (1) global sourcing models including outsourcing, offshoring, captive centers, and crowdsourcing; and (2) innovation through such sourcing models including open innovation. It draws on economics and management theories as well as real-world examples from managerial practice. The goal is to help identify the challenges of global sourcing as well as the costs, risks, rewards, and strategies involved in sourcing decisions.

Learning outcomes

By the end of the module, students should be able to:

• Discuss historical and economic perspectives on outsourcing and offshoring.
• Define the critical success factors in managing outsourcing relationships and distributed teams.
• Explore the process of achieving innovation through sourcing strategies.
• Analyse a business situation to identify key influencing factors of the outcome, and their effect. Apply theoretical frameworks to practical situations.

Indicative reading list

“The Handbook of Global Outsourcing and Offshoring” by Oshri, Kotlarsky, and Willcocks, 3rd edition, 2015 (highly recommended).
General Reading about Globalization: “The World Is Flat: A Brief History of the Twenty-first Century” by Thomas Friedman, 2005.
Offshoring Stories and Best Practices: “Globalization Wisdom” by Vashistha, 2009
A hands-on guide on how to set up an outsourcing and vendor strategy and decide what is in and what is out“ Multisourcing: Moving Beyond Outsourcing to Achieve Growth And Agility”, Cohen and Young, 2006
One of the few books on captives: “Offshoring Strategies: Evolving Captive Center Models,” Oshri, 2011.
On open innovation “Open Innovation: The New Imperative for Creating and Profiting from Technology,” Henry Chesbrough, 2003
On crowdsourcing, “The Open Innovation Marketplace,” by Dwayne Spradlin, 2011

Subject specific skills

Identify the trade-offs among global sourcing models (Domestic Outsourcing, Offshore outsourcing, Domestic
In-sourcing Captive Models).

Transferable skills

Explore the process of developing a sourcing strategy.
Examine the benefits and challenges of different sourcing strategies for different geographies.