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Develop the Strategic Outsourcing with Consideration of Core Competency Criteria Independence

Mohsen Baradari
National Iranian South Oil Company, Organization & Productivity Engineering, Ahvaz, Iran
Abstract—One of the crucial decisions of organization managers is deciding to outsource an activity and making the right decision will increase productivity. There are various quantitative and qualitative criteria for outsourcing an activity, but the core competency is very important and managers should separate it from other criteria. Meanwhile, for outsourcing decision making, not only the cost analyzing is not sufficient, but also it is very important to take into account some key factors such as quality and time duration when an activity or project is outsourced. In this model, if an activity is considered a high core competency (HC), is kept in houseand no further analysis is needed. Medium and low competency activities are marginal and require more analysis by multiple attribute decision making with consideration of other criteria and compare the inside and outside values such as time, risk and quality.

Index Terms—outsourcing, core competency, decision making

Cite: Mohsen Baradari, "Develop the Strategic Outsourcing with Consideration of Core Competency Criteria Independence," Journal of Advanced Management Science, Vol. 4, No. 1, pp. 57-60, January 2016. doi: 10.12720/joams.4.1.57-60
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