3.1 Why would business organisations outsource certain services to contractors? (1) 3.2 What kinds of services could potentially be outsourced to contractors? (1) 3.3 How would you know which services should be outsourced vs. services that should be delivered by people in- house? (1) 3.4 Who would the stakeholders and or role-players in an organisation be who makes decisions on which services will be outsourced vs which services will be performed by employees in house.
(1) Business organisations outsource certain services to contractors in order to reduce costs, improve efficiency, access specialized skills or technology, focus on core activities, and increase flexibility in their operations.
(2) Services that could potentially be outsourced to contractors include IT services, customer service, human resources, accounting and finance, marketing and advertising, and manufacturing and production.
(3) To determine which services should be outsourced vs. services that should be delivered in-house, organisations should consider factors such as cost, expertise, level of control required, and strategic importance to the business.
(4) The stakeholders and role-players involved in decisions on outsourcing include senior management, procurement teams, finance teams, department heads, and external consultants or advisors. They collaborate to assess the potential risks, benefits, and impacts of outsourcing specific services and make informed decisions based on the organization's goals and resources.