Table 2.

Cross case comparisons

Case organizationTrigger of outsourcing considerationPreliminary researchStructure and length of the decision-making processRoles involved in the process
Company AChanges in the business sector. Their philosophy is to evaluate the outsourcing of all service functions. Concern about maintaining current cost and quality levelsData collection and preliminary tenders (cost levels) from potential suppliers. Analysis of internal cost levels. Benchmarking with other companies. Risk analysisA structured model combining project model and sourcing process. The project had a steering group making the final decisions. Decision-making criteria were weighted numerically
The process took almost a year
The persons responsible for internal service delivery and representatives from sourcing and finance. HR director had a steering role
City ADysfunctional internal service function. Need to extend the service contentExchanging ideas of service content with potential suppliers. Analysis of suppliers’ cost level, internal cost unknown. Benchmarking with public organizationsThere is no structured project model. The decision-making authorities are determined in the city’s guiding principle
The process took approximately one year
HR director and person responsible for internal service delivery. Later, the directing doctor replaced with a consultant specializing in occupational health care
Company BRestructured ownership arrangements and a new CEO. Issues with the balance sheetPotential suppliers and their cost levels were mapped. Some benchmarking, but the CEO mainly relied on his personal experiencesNo established model for the process. Most decisions are made “ad hoc.” Board of directors approval needed above a certain investment level
The decision-making process took approximately four months
The CEO prepared the decision alone and informed the board of directors
Municipality BNeed for better cost monitoring. Need to expand the service contentPotential suppliers and their cost levels mapped. Benchmarking with other municipalitiesThe process model for investments was implemented. The decision-making authorities are determined in the guiding principle of the municipalityThe CFO prepared the decision alone, but the decision was made by the city council
Company CAnalysis of service production and benchmarking within the corporate group. Increased volumes of the service produced internallyMapping of potential suppliers by requests for information including cost levels. Benchmarking within the corporate group. Risk analysisA project was formed given the significance of the volume. Company management model determines decision-making authority. Decision-making process took nine monthRepresentation from logistics, head of service delivery, representatives from most significant internal customer units. Project owner was the CTO
Agency CInternal request for maintaining part of the service in-house. Aim of managing the supplier’s service qualityThe service users were heard and cost estimations were made. The supplier selection was made from a framework agreement which demolished the need of preliminary researchDecision was made by board of directors. Project team for competitive tendering and supplier selection. The project team was mismanaged and the process prolonged
The decision making process was followed through in a few months
The administrative director responsible for the service delivery prepared the decision by hearing internal service users. The procurement team and external consultants participated in supplier selection
Company DBudget discipline, need for better management of volume variations and suppliersBenchmarking and mapping potential suppliers in the marketFormal decision-making process. A project team with steering. An external consultant to provide benchmarking connections and dataThe project team consisted of roles responsible for service content, supplier relations, development, purchasing, business control and HR. The project had a steering group
Agency DSignificant increase in service volumeMapping of potential suppliers and costs. Benchmarking has not been a significant data source due to a lack of target organizationsThe original outsourcing decision was executed by few executives in the agency. The reevaluations have been followed through according to the guiding principlesThe projects teams have consisted of lawyers, roles from finance and service content and procurement specialists.

Note:

HR = Human resources

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