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Performance management and the outsourcing process Lessons from a financial services organisation

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McIvor, Ronan, Humphreys, Paul, McKittrick, Alan and Wall, Anthony (2009) Performance management and the outsourcing process Lessons from a financial services organisation. INTERNATIONAL JOURNAL OF OPERATIONS & PRODUCTION MANAGEMENT, 29 (10). pp. 1025-1048. [Journal article]

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DOI: 10.1108/01443570910993474

Abstract

Purpose - The purpose of this paper is to assess the applicability of a number of performance management techniques in the outsourcing process, in a business services context. Design/methodology/approach - Using a structured outsourcing framework, performance management techniques are applied in a financial services organisation over a three-year period. A case study approach is employed to undertake the research, which involved the research team engaging directly with the Organisation throughout the outsourcing process. Findings - Applying performance management techniques in the outsourcing process is challenging in a number of areas including comparison difficulties, incomplete information and inadequate performance management systems. However, benchmarking and cost analysis are useful mechanisms for improving performance, and reducing costs via internal process redesign or outsourcing. Performance management techniques can be employed to remove inefficiencies from processes both prior to outsourcing and during the outsourcing relationship. Research limitations/implications - There are a number of limitations of the research approach including gaining full participation from the company, having access to all relevant company information and time constraints. Practical implications - The research findings highlight the implications of applying performance management techniques in a practical outsourcing setting. As well as identifying the challenges, the research highlights the value of integrating critical success factors, cost analysis, benchmarking and other performance management techniques into the outsourcing process. Originality/value - There are few studies in the literature of applying performance management techniques in the outsourcing process at an operation's level. The findings have identified the challenges and benefits of performance management techniques in the outsourcing process. The findings have highlighted the importance of operations management concepts such as performance management, operations strategy, business improvement and process re-design to services outsourcing, and the need for further research in this area by operations management scholars.

Item Type:Journal article
Faculties and Schools:Ulster Business School
Ulster Business School > Department of Accounting, Finance and Economics
Ulster Business School > Department of International Business
Ulster Business School > Department of Management and Leadership
Research Institutes and Groups:Business and Management Research Institute
ID Code:2568
Deposited By:Professor Paul Humphreys
Deposited On:08 Dec 2009 09:32
Last Modified:07 Mar 2013 11:49

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