Thursday, 5 November 2009

week 10, Section 10

When a company looking for outsourcing, they have to do lots of budgeting concern, such as if it’s worthy to hire someone and spend money and time to train them, or spend same amount of money to hire someone already been trained.

There are different benefits between contractor and sub-contractor, also another thing for the company to concern.

Just as some organizations, outsource IT operations, organizations can outsource part or all of their information security programs.
When an organization has outsourced IT services, information security should be part of the contract arrangement with the outsourcer.
Because of the complex nature of outsourcing, the bests advice is to hire the best outsourcing specialists, and then have the best attorney possible negotiate and verify the legal and technical intricacies of the outsourcing contract.


RFP is when the company sends a specific detailed proposal to its suppliers. This can show suppliers risks and benefits, and make sure it will suit both parties’ requirements.


Evaluation, before the company starting outsourcing, they have to make sure that a clear sub-contract is ready to process. Lots of company has failed to do such things, result came out with lots of refund and repair to the customers after the service has been completed.

Contract award, Manager will agree with the 3rd party after negotiation.

Exit Strategy, Contract between customer and outsourcer. A solution for when the service fail.


Company has many reasons for why they are hiring outsourcing, both internal and external problems. In almost all the service industry, WOM is the most important marketing strategy for the image of the brand. Failure will damage the brand image, and decrease the reputation of the company.

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