Making Outsourcing Happen with Balanced Scorecard - a Unification Approach Paper
MIT E-commerce Research Forum
13 Pages Posted: 19 Feb 2003
Date Written: January 1, 2003
Abstract
In today's cutthroat competitive environment, we need a tool, which incorporates the "Scalable Strategic perspective" or in other words "quantification of being" of an organization. Today we have convergence of a number of forces that have changed our business environment. These would include: 1) the competitive pressures of global economy, 2) fast changing technologies and niche competitors that can change industries overnight, and 3) institutional investors who demand a focused management that delivers bottom line results, adding to shareholder value. Also, the information available to shareholders and their ability to analyze and measure performance has advanced dramatically. These and other forces have awakened management. Moreover purely on financial perspective, any value-additive model should work on a strategy of cost reduction for all "Fixed cost", "Variable Cost" and "Human cost". Human Cost at first glance will look like overlapping cost between fixed and variable cost, for how it is a different cost all together.
Keywords: Outsourcing, IT, Process, Balance Score Card, Matric
JEL Classification: O31
Suggested Citation: Suggested Citation