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)
3.1 Business organisations may outsource certain services to contractors in order to save costs, increase efficiency, access specialized skills or resources, improve quality, or focus on their core competencies.
3.2 Services that could potentially be outsourced to contractors include IT support, marketing, accounting, human resources, customer service, legal services, logistics, and manufacturing.
3.3 Companies should consider outsourcing services that are not core to their business, require specialized skills or equipment, have fluctuating demand, or can be done more cost-effectively by third-party vendors. Services that involve sensitive information, require close collaboration with internal teams, or are critical to business operations may be better kept in-house.
3.4 The stakeholders and role-players in an organization who make decisions on outsourcing services vs performing in-house could include senior management, department heads, procurement teams, legal counsel, finance teams, and external consultants. Ultimately, the decision-making process should involve evaluating the risks, costs, benefits, and strategic implications of outsourcing specific services.