Master in Business Administration (MBA) Program

Course Name: Global Outsourcing

Course Code: MBA 839

Course Credit: 3

Course Owner: Ramarcha Kumar, Ph. D

Name of Faculty Members to Teach this Course

(To be mentioned after final course allocation)

Galgotias UniversitySchool of Business

Course Background and Learning Objectives:

Outsourcing has emerged as a major business practice for many big corporations around

the world. There are several reasons behind this apart from the cost effectiveness due to

low wage rate in many developing countries. It is really important to understand why

outsourcing is done in certain ways and not in all other possible manners. This course is

designed in order to provide a proper understanding of outsourcing including the different

types and levels of outsourcing with cost benefit analysis. The problems and challenges

in outsourcing at different stages and starting your own outsourcing business are also an

important part of this course.

The learning goals and objectives of this course for students to pursue management

education are:

1. To acquaint students with the factors which can affect the business decision

making in regard to outsourcing and to identify the stakeholders and analyze their

behaviour. [Sub-goals: 1.2, 1.5, 2.2 and 3.3]

2. To assist students in developing their creativity and innovative thinking to make

good decisions in a complex global environment by correctly identifying

problems and opportunities, analyzing alternatives properly, and making the best

choices in a given condition. [Sub-goals: 2.1, 2.2, 2.3, 3.2 and 4.1]

3. To critically analyse situations for forward thinking through innovation. [Sub-

goal: 3.1]

Pedagogy:

The pedagogy will be a combination of class lectures (theory and solving problems),

experience sharing, real life examples, caselet discussions, and projects/assignments.

Every concept or terminology will be explained from the basic with its definition and

impact on the real world with some suitable examples so that students from any

background are able to comprehend it easily. In addition to the text and reference books,

additional readings and cases will be distributed in the class from time to time. Students

are also expected to read and identify the problems in understanding the concepts and

their application in the real world situation before the start of each session. This will help

to develop creativity and innovative thinking in students to manage multi-stakeholder

relationships.

Course Strategy and Requirements:

Every field of study has its own language and its own way of thinking. To get the

conceptual clarity and to think the application of concepts for business managers you

should follow the following strategies.

(i) Read and identify the problems in understanding the concepts before the

start of each session. If you are unable to get the conceptual clarity after

the end of the session, immediately ask questions in the class (if time

permits), or after the class (preferably same day).

(ii) Try to read at least one business newspaper daily and identify the terms

which are not clear to you.

(iii) Follow the business practices of some big corporations in regard to

outsourcing and try to understand the reasons behind their decisions.

(iv) Any difficulty in understanding economic concepts while studying

business newspapers and listening to business news channels, clarify your

doubts by asking friends, or the teacher.

(v) While studying other courses like Strategic Management, International

Business Law try to relate and use various concepts which you have

learned from this course.

(vi) Class participation is very much useful for better understanding of the

concepts. This will be appreciated and rewarded if you add value to the

class through your questions, statement, and comments. It is the quality of

these that is more important than the quantity.

(vii) Moreover, there will be assignments/projects assigned to all of you either

individually or in group. Late submission of assignments/projects will not

be accepted.

Assessment of Learning Goals and Objectives:

Components of evaluation are very crucial pertaining to assessing the learning goals and

objectives of the course. Keeping in mind students’ heterogeneous background, and

strategies specified above, the following components of evaluation have been designed to

assess the learning goals and objectives. Quizzes will evaluate the conceptual clarity of

each student most frequently. Case studies discussion, project report presentation and

semester end examination will assess the learning goals 1, 2 and 3 as mentioned above.

Learning Goals and Objectives*Assessment Components and Marks 1 2 3

Quiz/ Case Studies/ Project Report Presentation (20 Marks)

√ √ √

CAT-1 & CAT-2 (30 Marks) √ √ √Semester End Examination (50 Marks) √ √ √

* For details of 1, 2, 3 learning goals and objectives, see above of this course outline.

Quiz/ Case Studies/ Project Report Presentation

This is an individual assessment component of evaluation consisting of conceptual,

theoretical and numerical multiple choice questions. There will be at least 3 quizzes and

best 2 will be taken into consideration for final grade of students. Similarly, case studies

discussion and project report presentation might also be considered as the components of

evaluation to assess students’ performance in a group. Through case studies and project

report presentation students are expected to apply economic concepts and business

models in a decision-making setting to achieve the objectives of the firm, i.e. profit

maximization. Through these components students will also develop their creative and

innovative thinking by taking critical investment decisions into consideration.

Continuous Assessment Test 1 & 2 (CAT-1 & CAT-2)

This component of evaluation is to assess the performance of students after the

completion of 15 lectures and 30 lectures respectively. This is to monitor students’

performance continuously and make them aware about their mistakes and wrong

understanding of the concepts.

Semester End Examination (SEE)

Semester End Examination is to assess students individually by keeping the overall

learning goals and objectives in mind. The questions are mostly analytical and situational.

RECOMMENDED TEXT BOOK AUTHOR & PUBLICATIONBlack Book of Outsourcing Wilson, Brown, Wiley India

SUPPLEMENTARY READINGS

Global outsourcing and offshoring Kumar, Kundu, Contractor, Pedersen : Cambridge University Press

Handbook of global outsourcing and

offshoring

Willcocks, Oshri, Kotlarsky: Palgrave Macmillan

Global services outsourcing Ronan Mcivor: Cambridge university pressGlobal business process outsourcing: Concepts and practices

T.P. Rajmanohar: ICFAI

Course Outline (session-wise):

Session Topics to be discussed ReadingsModule I: Overview of outsourcing processThis module discusses the meaning, level and phases of outsourcing and the reason behind the emergence of outsourcing as a major business practice.

1 Introduction, What is different about outsourcing Text Book, Introduction2 Outsourcing terminologies Text Book, Chapter 13 Levels of outsourcing Text Book, Chapter 14 Phases of outsourcing process Text Book, Chapter 15 Monitoring the evolving outsourcing environment Text Book, Chapter 16 Outsourcing vs worldwide sourcing Text Book, Chapter 17 Facing the challenges of outsourcing Text Book, Chapter 1

Module II: : Reasons to outsource and decision to outsourceThis module covers the need for outsourcing and differences in time, culture across the globe and the best possible decision in regard to outsourcing. 8 Identifying your company’s outsourcing needs Text Book, Chapter 2

9 Identifying reasons to outsource Text Book, Chapter 2

10 Staring on the outsourcing path Text Book, Chapter 211 Key drivers behind outsourcing decisions Text Book, Chapter 312 Laying the foundation of outsourcing Text Book, Chapter 313 Facing geographical, cultural and time differences Text Book, Chapter 314 Implementing strategic sourcing, Maintaining control Text Book, Chapter 315 Making an informed outsourcing decision Text Book, Chapter 316 Case Study- The giant awakens: Sheen Software Systems

considers China for offshore IT outsourcingWilcocks, Oshri, Kotlarsky

Module III: Outsourcing- cost-benefit analysis and optionsThis module analyzes the different options available when it comes to outsourcing and cost-benefit analysis of all the decisions.

17 Conduct the feasibility study Text Book, Chapter 418 Detailed analysis of requirements Text Book, Chapter 419 Parameters of vendor relationship Text Book, Chapter 420 Measuring performance Text Book, Chapter 421 Cost benefit analysis Text Book, Chapter 422 Outsourcing options Text Book, Chapter 523 Emerging outsourcing opportunities Text Book, Chapter 524 Selecting your suppliers and vendors Text Book, Chapter 625 Determining all the costs Text Book, Chapter 626 Comparing company cultures Text Book, Chapter 627 Phases of outsourcing Text Book, Chapter 6

Module IV: Outsourcing- Managing and Negotiating

Session Topics to be discussed Readings This module discusses how to manage your outsourcing business including implementing best practices, renegotiation and avoiding common mistakes.

28 Managing your outsourcing vendors Text Book, Chapter 729 Negotiating contracts Text Book, Chapter 830 Implementing best practices, Establishing contract

measurementsText Book, Chapter 8

31 Case Study- Transforming a human resource function through outsourcing: The BAE systems

Wilcocks, Oshri, Kotlarsky

32 Renegotiating or terminating the contract Text Book, Chapter 833 Avoiding common outsourcing mistakes Text Book, Chapter 1134 Knowing when to say no to outsourcing Text Book, Chapter 1135 Covering your business back Text Book, Chapter 1136 Strategizing for success in the new global economy Text Book, Chapter 12

Module V: Starting the outsourcing businessThis module discusses the possibility of starting your own outsourcing business and some basic problems associated with it.

37 Starting an outsourcing business Text Book, Chapter 1838 Pricing and promotion Text Book, Chapter 1839 Knowing your price floors, Determine your price point Text Book, Chapter 1840 Case study- Strategic challenges facing captive centres Wilcocks, Oshri, Kotlarsky

END-TERM TEST* The names of different group members will be announced by the APO or by the course instructor or by the CR of the class.

Students’ Interaction Time

[Each faculty member teaching this course for one Section needs to mention 2 hours towards students’ interaction time per week between Monday – Friday. If anyone teaches more than one Section, accordingly he/she needs to clearly mention students’ interaction time in the detailed course outline.]