Business Finance
UCLA X Cosmetic Company IT Outsourcing Executive Summary

University Of California Los Angeles

Question Description

Need help with my Management question - I’m studying for my class.

Create an executive summary document outlining the entire outsourcing and contracting process for those business processes that you decide to outsource. Your analysis must include the items below.

  • It must include an analysis on which business processes you would outsource versus those that you would maintain in-house. You need to justify your decision for each business process maintained in-house or outsourced (e.g., accounting, editorial, photography, publishing, distribution, printing, layout, advertising, editing, articles, etc.).
  • For those services that you intend to outsource, provide the following.
    • Establish the preliminary performance targets and level of service that will be required from the selected vendors.
    • Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit).
    • Determine the evaluation criteria that you will use to select the preferred vendor(s) (e.g., low price, best value, etc.). Are there different evaluation criteria for different business units? Why?
    • Identify the number of vendors that you will select to provide the services that will be outsourced (i.e., one vendor for all services versus individual vendors with specific expertise in each of the services to be outsourced).
    • Construct a time line that summarizes the bid activities and time duration for each contracting process (i.e., plan purchases and acquisition through select sellers)

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Final Answer


Running head: IT OUTSOURCING


IT Outsourcing
Student’s Name
Institution’s Name


IT Outsourcing

IT Outsourcing is whereby a company uses other service providers to conduct other IT
functions of the company. This includes organizing a direct strategy for the company, the
management of the company’s infrastructure as well as managing the service desk of the
company. In some companies, Outsourcing extends to the transfer of several employees from
one company to another for learning purposes. It could also include the transfer of electronic
gadgets to other companies for various reasons. Not all companies practice Outsourcing. Other
companies practice both Outsourcing and in house management, depending on their availability
of infrastructure and resources. In-house management is whereby the company or organization
conducts everything for themselves. This includes the management, production, and distribution
processes (Fitoussi & Gurbaxani, 2012).
Several advantages come as a result of practicing IT outsourcing. These advantages
include the following;
To cut costs used in production. This is one of the main benefits of IT outsourcing. Companies
who exercise Outsourcing in their company end up saving a lot. This is a result of the time and
money saved, which would have been used in the production process. Outsourcing helps to keep
the money that would have been used to purchase the necessary production tools etc.
Increase in profits. The com...

Marrie (19178)
Carnegie Mellon University

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