Week 7 Case Study Contracts and Procurement
Purpose
The purpose of this paper is to highlight an area in a financial organization that may be outsourced and prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process that I’ve decided to outsource. This analysis will justify my decision for the business process outsourced by the followings: * Establish the preliminary performance targets/level of service that will be required from the selected vendors * Establish the type of contract that you will use for each contract * Determine the evaluation criteria you will use to select the preferred vendor(s) * Identify the number of vendors that you will select to provide the services to be outsourced * Construct a timeline that summarizes the bid activities and time duration for each contracting process.
Current Situation
First National Bank has been considering outsourcing some of their business processes in order to reduce cost. I am the CIO and will evaluate the following business processes and choose which process(s) will be the right candidate to outsource. * Finance and Accounting * Investment and Asset Management * Human Resources * Procurement * Logistics * Real estate management * Miscellaneous (energy services, customer service, mailroom, food processing)
I am to prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process(s) that will help increase profitability and efficiency within our bank institution.
Outsourcing versus In-house
I’ve chosen to focus on outsourcing the Human Resources process out of the seven processes that exist within the First National Bank. Below are the outsourcing pros and cons for the Human Resource process. I’ve made the strategic decision to outsource the following HR functions: * Payroll * Transaction Processes * Call Center Operations
By outsourcing
The purpose of this paper is to highlight an area in a financial organization that may be outsourced and prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process that I’ve decided to outsource. This analysis will justify my decision for the business process outsourced by the followings: * Establish the preliminary performance targets/level of service that will be required from the selected vendors * Establish the type of contract that you will use for each contract * Determine the evaluation criteria you will use to select the preferred vendor(s) * Identify the number of vendors that you will select to provide the services to be outsourced * Construct a timeline that summarizes the bid activities and time duration for each contracting process.
Current Situation
First National Bank has been considering outsourcing some of their business processes in order to reduce cost. I am the CIO and will evaluate the following business processes and choose which process(s) will be the right candidate to outsource. * Finance and Accounting * Investment and Asset Management * Human Resources * Procurement * Logistics * Real estate management * Miscellaneous (energy services, customer service, mailroom, food processing)
I am to prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process(s) that will help increase profitability and efficiency within our bank institution.
Outsourcing versus In-house
I’ve chosen to focus on outsourcing the Human Resources process out of the seven processes that exist within the First National Bank. Below are the outsourcing pros and cons for the Human Resource process. I’ve made the strategic decision to outsource the following HR functions: * Payroll * Transaction Processes * Call Center Operations
By outsourcing
References: Jones, Paul (2009, May) Outsourcing: Key legal issues and contractual protections. Farrar&Co. Retrieved June 14, 2013. www.farrar.co.uk Lucas, Suzanne (2013, May 22) Should you hire or outsource HR? Evil HR Lady. Retrieved June 16, 2013. http://www.inc.com/suzanne-lucas/should-you-hire-or-outsource-hr.html Gillard, Josh (2012, March 7) The Hidden Cost of Operating a Call Center. Tacamore. Retrieved June 17, 2013. http://www.tacamor.com/talkamore/the-hidden-costs-of-operating-a-call-center/