• Title/Summary/Keyword: Outsourcing Partner

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An Exploratory Study on the Outsourcing Partner Selecting Factors of Plant Exporters - A Case Study of "A" Company - (플랜트 수출기업의 아웃소싱 파트너 선정요인에 관한 탐색적 연구 - "A" 사의 사례를 중심으로 -)

  • Ha, Gui-Ryong
    • International Commerce and Information Review
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    • v.11 no.4
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    • pp.215-228
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    • 2009
  • This research considers to analyze the importance and priority order of outsourcing partner selecting factors on plant exporters. This research deals with case study on the outsourcing in the "A" plants exporter. To obtain the goal this research, firstly, based on reviewing previous literature and taking professional advice, the selecting factors were identified and conceptualized, and we made the hierarchy model and utilized AHP in analysis method. Secondly, AHP model constructed 3 higher factors, and 9 lower factors. Thirdly, the data used for the weight values for the outsourcing partner factors were collected from outsourcing experts and officers in "A" company. The 3 higher factors were 'Firm's Competence', 'Customer/User Factor', and 'Systemic Factor', and the 9 lower factors were 'experience of outsourcing', 'competency based HR', 'market share', 'reliability', and 'communication', etc. As the results of the analysis, this research evaluated with an importance highest among selecting factors of outsourcing partner of "A" company were 'Customer/User Factor(46.5%)', 'Systemic Factor(27.8%)' and 'Firm's Competence(25.7%)'. And importance highest among lower selecting factors of outsourcing partner of "A" company were 'reliability(31.4%)', 'competency based HR(14.4%)' and 'communication(13.7%)'. The developed model and selecting factors of outsourcing partner are expected to contribute on effective decisions on plants exporters. Managerial implications and future research directions are suggested based on findings.

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The effects of outsourcing strategies and outsourcing partner selection factors on the success of outsourcing and BSC performance (아웃소싱 파트너 선정요인과 전략이 아웃소싱 성공도 및 BSC성과에 미치는 영향에 관한 연구)

  • Jeong, BumSung;Shim, JungTaek;Lee, SangShik
    • Journal of Korea Society of Industrial Information Systems
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    • v.18 no.6
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    • pp.113-125
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    • 2013
  • Outsourcing is used as one of the effective methods while many companies have to start to innovate everything because of increased fierce global competition, low-growth economy, and varied customers' requirements. Under these conditions, a lot of firms are introducing outsourcing for cost savings, risk reduction, management efficiency, strengthen core competence. The purpose of this study is to analyze the effect of between outsourcing success by outsourcing strategy and factors for selecting outsourcing partners and BSC success in the Korea manufacturing. This study was intended to make it possible to get a practical approach on evaluation and compensation of the outsourcing manufacturing enterprises by identifying outsourcing success factors and BSC performance factors. When an outsourcing partner of enterprise is selected, detailed assessment will be possible in terms of partner's competence, financial factors, institutional factors, and operational factors.

Strategies for Successful Supplier Relationship Management(SRM) in the SI Industry (SI 산업의 공급자관계관리(SRM) 모델 : 전략적 파트너십 협력관계로의 발전)

  • Cha, Kyung-Jin;Lee, Zoon-Ky;Cha, Joon-Seub
    • The Journal of Society for e-Business Studies
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    • v.17 no.3
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    • pp.105-116
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    • 2012
  • In the system integration (SI) industry, improving relationships with outsourcing partners is one of the key challenges faced by SI companies that aim to increase productivity and reduce costs. In the SI industry, over 80% of project development work is performed by these outsourcing partners. Hence, large SI companies focus on fostering high-performing partners through improved cooperation and mutual relations. However, in the SI industry the existing process of managing outsourcing partners is unable to advance to the level of long-term partnerships due to inadequate information sharing and communication in the process of selecting and assessing a potential and existing partner. Based on the theory of partnership, this study identifies the success factors for new strategic partnerships. Further, this study presents a model for assessing partner companies to promote increased productivity and improve the relationship between an SI company and its partner. In addition, this model is used to assess partner relationships for a well-known SI company "A". This study explores the feasibility of a new framework model.

The Feasibility Study of Offshore Outsourcing in Korea SI Industry: Comparison between India and China case (한국 SI 산업의 Offshore 아웃소싱 가능성 검토: 인도/중국 사례 비교)

  • Yoo, Jin-Ho;Kwon, Yong-Min;Yi, Yoon-Sung
    • Journal of Information Technology Services
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    • v.4 no.2
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    • pp.135-144
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    • 2005
  • The plenty of successful cases of Multi-national companies has been realized benefits of offshore outsourcing in particular "cost savings" from offshore IT outsourcing services, such as call center, software development, IT support and maintenance etc. A few Korean companies recently started to make the feasibility study of offshore IT outsourcing to catch up with the global trend. The objective of this study is to present the feasibility of offshore IT outsourcing of Korean companies through the analysis of pilot projects results between Indian and Chinese companies. The analysis include key elementsof cost, productivity, quality, practical issues as well as Gartner's framework, "AD Sourcing Cost Model", composed of 7 model factors. The findings of this study are not limited to understand offshore IT outsourcing but also provide useful guidelines covering wide range from the theoretical framework of selecting suitable offshore partner.

A Study on Threat Containment through VDI for Security Management of Partner Companies Operating at Industrial Control System Facility

  • Lee, Sangdo;Huh, Jun-Ho
    • Proceedings of the Korea Information Processing Society Conference
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    • 2019.10a
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    • pp.491-494
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    • 2019
  • The results from the analysis of recent security breach cases of industrial control systems revealed that most of them were caused by the employees of a partner company who had been managing the control system. For this reason, the majority of the current company security management systems have been developed focusing on their performances. Despite such effort, many hacking attempts against a major company, public institution or financial institution are still attempted by the partner company or outsourced employees. Thus, the institutions or organizations that manage Industrial Control Systems (ICSs) associated with major national infrastructures involving traffic, water resources, energy, etc. are putting emphasis on their security management as the role of those partners is increasingly becoming important as outsourcing security task has become a common practice. However, in reality, it is also a fact that this is the point where security is most vulnerable and various security management plans have been continuously studied and proposed. A system that enhances the security level of a partner company with a Virtual Desktop Infrastructure (VDI) has been developed in this study through research on the past performances of partner companies stationed at various types of industrial control infrastructures and its performance outcomes were statistically compiled to propose an appropriate model for the current ICSs by comparing vulnerabilities, measures taken and their results before and after adopting the VDI.

Measuring a Value of Contract Flexibility in the Third-Party Warehousing

  • Park, Chul-Soon;Kim, Bo-Won
    • Management Science and Financial Engineering
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    • v.15 no.1
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    • pp.1-31
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    • 2009
  • This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

Potential Job Seekers' Preferences on the Local Jobs: A Case of the POSCO Outsourcing Partner Cooperation in Gwangyang City (지역 일자리에 대한 잠재적 구직자의 선호도 분석: 광양제철소 협력사를 사례로)

  • Lee, Jeong-Rock
    • Journal of the Economic Geographical Society of Korea
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    • v.22 no.3
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    • pp.337-350
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    • 2019
  • The Gwangyang City of Jeonnam Province, is one of the steel cities representing the Korea. Gwangyang Steelworks are the core of the local economy, and 59 firms of POSCO Outsourcing Partner Cooperation(POSPA) have been employed 9,300 to 9,500 peoples, and have been acted as an central incubator for job creation. POSPA, however, are suffering from the retirement of company in young age group, in their 20s and 30s. The purpose of this study is to analyze potential job seekers' perceptions and job preferences for POSPA are suffering from job openings. In order to this research purpose, it used questionary survey, and sample groups were divided into three areas, the Eastern Jeonnam Province, Gwangju, and the Seoul metropolitan area. Potential job seekers' perceptions for POSPA was low, and perceptions on firm and job opportunity information was lower. This characteristics were the same as those of respondents living in eastern South Jeolla Province. Potential job seekers, however, showed high preference for finding job at POSPA. A place-based policy considering the local labor market is needed to resolve the mismatch between the difficulty of finding a labor and the difficulty of finding a job.

Differences Between Client's and Supplier's receptions of IT Outsourcing Risks (IT아웃소싱 위험에 대한 고객과 공급업체와의 인식 차이)

  • Kim, Kyung-Ihl
    • Journal of Convergence for Information Technology
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    • v.8 no.5
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    • pp.237-242
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    • 2018
  • Researchers have suggested successful risk management as a key factor in successful IT outsourcing projects implementation. The documented investigations, however, have mainly addressed risk management only from a single perspective of either clients or IT vendors. This study explored the potential perception inconsistency regarding the risks between the client and the vendor for IT outsourcing projects by using a quasi-Delphi approach. The analysis results indicated some inconsistencies in the risks perceived by the two parties: (1) the clients regarded (a) lack of vendor commitment to the project and (b) poor vendor selection criteria and process as top critical risks but the vendors didn't; and (2) on the other hand, the vendors perceived (a) unclear requirements and (b) lack of experience and expertise with project activities as significant risks but the clients didn't. Insights into how the client and the vendor perceive risks may help both parties determine how to partner and manage project risks collaboratively to succeed in outsourcing.

An Empirical Study on the Importance of Psychological Contract Commitment in Information Systems Outsourcing (정보시스템 아웃소싱에서 심리적 계약 커미트먼트의 중요성에 대한 연구)

  • Kim, Hyung-Jin;Lee, Sang-Hoon;Lee, Ho-Geun
    • Asia pacific journal of information systems
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    • v.17 no.2
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    • pp.49-81
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    • 2007
  • Research in the IS (Information Systems) outsourcing has focused on the importance of legal contracts and partnerships between vendors and clients. Without detailed legal contracts, there is no guarantee that an outsourcing vendor would not indulge in self-serving behavior. In addition, partnerships can supplement legal contracts in managing the relationship between clients and vendors legal contracts by itself cannot deal with all the complexity and ambiguity involved with IS outsourcing relationships. In this paper, we introduce a psychological contract (between client and vendor) as an important variable for IS outsourcing success. A psychological contract refers to individual's mental beliefs about his or her mutual obligations in a contractual relationship (Rousseau, 1995). A psychological contract emerges when one party believes that a promise of future returns has been made, a contribution has been given, and thus, an obligation has been created to provide future benefits (Rousseau, 1989). An employmentpsychological contract, which is a widespread concept in psychology, refers to employer and employee expectations of the employment relationship, i.e. mutual obligations, values, expectations and aspirations that operate over and above the formal contract of employment (Smithson and Lewis, 2003). Similar to the psychological contract between an employer and employee, IS outsourcing involves a contract and a set of mutual obligations between client and vendor (Ho et al., 2003). Given the lack of prior research on psychological contracts in the IS outsourcing context, we extend such studies and give insights through investigating the role of psychological contracts between client and vendor. Psychological contract theory offers highly relevant and sound theoretical lens for studying IS outsourcing management because of its six distinctive principles: (1) it focuses on mutual (rather than one-sided) obligations between contractual parties, (2) it's more comprehensive than the concept of legal contract, (3) it's an individual-level construct, (4) it changes over time, (5) it affects organizational behaviors, and (6) it's susceptible to organizational factors (Koh et al., 2004; Rousseau, 1996; Coyle-Shapiro, 2000). The aim of this paper is to put the concept, psychological contract commitment (PCC), under the spotlight, by finding out its mediating effects between legal contracts/partnerships and IS outsourcing success. Our interest is in the psychological contract commitment (PCC) or commitment to psychological contracts, which is the extent to which a partner consistently and deeply concerns with what the counter-party believes as obligations during the IS project. The basic premise for the hypothesized relationship between PCC and success is that for outsourcing success, client and vendor should continually commit to mutual obligations in which both parties believe, rather than to only explicit obligations. The psychological contract commitment playsa pivotal role in evaluating a counter-party because it reflects what one party really expects from the other. If one party consistently shows high commitment to psychological contracts, the other party would evaluate it positively. This will increase positive reciprocation efforts of the other party, thus leading to successful outsourcing outcomes (McNeeley and Meglino, 1994). We have used matched sample data for this research. We have collected three responses from each set of a client and a vendor firm: a project manager of the client firm, a project member from the vendor firm with whom the project manager cooperated, and an end-user of the client company who actually used the outsourced information systems. Special caution was given to the data collection process to avoid any bias in responses. We first sent three types of questionnaires (A, Band C) to each project manager of the client firm, asking him/her to answer the first type of questionnaires (A).

Comparison of Occupational Danger and Physical Health Problems of Workers according to the Form of Employment (고용형태에 따른 근로자의 위험 및 건강에 대한 비교)

  • Oh, Changseok;Jeon, Hui Won
    • The Korean Journal of Health Service Management
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    • v.14 no.1
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    • pp.111-122
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    • 2020
  • Objectives: The study aims to compare indirect form of employment with direct form of employment on the variables of occupational danger and physical health. Methods: I studied based on the data of 5th Korean Working Conditions Survey (KWCS) which was performed by Occupational Safety & Health Research Institute of Korea Occupational Safety and Health Agency in 2017. SAS 9.4 was used for statistical analysis of the final data. Results: Based on the verification result, the hazard is higher for direct employment than for dispatch or subcontract in case of exposure to risks in the health and social welfare industry. Based on cross tabulation, significant differences were found in the proportions of harmful and safe tasks in direct employment and those in outsourcing in the physical health industry. It was found that the risk of hazard is 2.18 times higher in outsourcing jobs than in direct employment. Conclusions: It is necessary to consider a dispatch and subcontract partner as a strategic partner and not simply hand over dangerous or hard tasks to them. Active and aggressive cooperation along with support from the employer enterprise built in the contract is necessary for the safety and health of dispatch or subcontract laborers.