Sourcing, which is one of the latest trends in organizational strategy, can generate lower costs and higher quality. However, realizing that, good configuration and coordination too choose between the different sourcing options; offshoring, outsourcing and shared service centers (SSC), is necessary. Next to that, sourcing of ‘operations’ plays a much larger role in sourcing issues than in previous years. It will therefore be investigated; ‘how a sourcing strategy for ‘operations’ is defined and which factors play a role when formulating this strategy’. According to the three interviews and respondents of two questionnaires, it can be determined that internal process characteristics, external factors and change management implications, which all three are used for the research-concept, indeed play a role in the sourcing strategy for ‘operations’. The process characteristic ‘volume’ is the largest internal role-playing factor and determines the reasons for a choice between a SSC and outsourcing. Next to that, the external factors, ‘legislation’ and ‘technology’ determine the reasons for the same choice. Offshoring is conversely a sourcing option that is not well known yet. Therefore more research is still necessary. Furthermore it showed that resistance, competencies necessary and needed expertise, are not decisive, comparing these factors to the process characteristic and external factors. However, the choice between the three sourcing options does have influence on ‘consultant’s role’, ‘planning’, ‘leadership’ and ‘focus’ of the change resulting from the choice. Defining sourcing strategy for ‘operations’, which includes all above mentioned factors, is mainly done by higher- and middle-management.

Contributors: KPMG
Categories: SIG U Resource, Whitepaper
SRC Type: Sourcing, Strategy