Outsourcing has come to a point where most companies have been over reliant on in this era. To put it simply, if one can complete the given task at a faster yet cheaper rate, wouldn’t you as a boss consider it too? Getting an in-depth research of outsourcing, we can understand if outsourcing is applicable to all businesses. In our research for the company, the company must be providing a specialised service, skills, and knowledge. It will increase the difficulty to outsource. If we have to find a professional to perform the task, how about the company that is providing professional service. Is manpower an issue or do they have all the professionals in hand to meet the market requirements?
With outsourcing being introduced to the company, it brings along a series of relief yet tension to the organization. There would be resistance from the people as they would have the impression that their job is at stake where any moment they would be out of job.
The company for this research ARTLAS PTE LTD (Singapore Based company) has been established for a couple of years. Its main scope was driven towards handling fine art (internationally). The company is strategically located in Singapore where assurance of quality service is delivered to the customers at the highest perfection. Given that it has been working on a lean team of 10 pax, gradually employees felt that the workload has been tremendous given that a certain period within a year they would be expecting a peak due to certain demands. Often it would be perceived that one is incompetent to accomplish certain task thus there is a need and leading to instilling fear that they would be out of the company to reduce cost to supplement the outsourcing fees.
The relentless competition from the local and international markets is forcing the company to find better ways of doing business with fewer resources. Furthermore, fine art is a small market but with high potential to grow. To be Successful, ATLAS would need to be concentrating on “core competencies” to enhance its competitive position. This strategy requires organizations to identify and retain critical products, processes, or services in the value chain which are close to the core competencies while outsourcing other processes.
Thus, the option of outsourcing would be an option however there are many factors to be considered before one is recruited. Factors such as:
- Art handlers require a pair of delicate hands and experience in handling different mediums
- Insurance coverage for non-experience workers may not be insured
- Clients will tend to be more comfortable with the regular handlers
- Handlers will require to rush for any installations overnight during setup
- Any claims will put ARTLAS reputation at risk and they have been clean without claims since operation
- Work-man insurance will also be part of the worry, as they may be handling sculptures more than 300kg
This Case Study will investigate the pros and cons of outsourcing within the management and ground perspectives and what the impact would be to the organization. The motive behind this research is to understand why people would opt for outsourcing instead of leveraging what there is within the company. If a company is opting out, why is it so? Can experience curve help in this situation? In addition, what are the procedures in which outsourcing is to be conducted to ensure that everything is managed properly from the start to the end. Lastly, to also have an understanding from the interviewees whom we would be engaging, on their thoughts in this topic. It may not be the right choice, but will there be an alternative to integrate between the situations? It may be a game changer to the industry; at least the implementation may be good to this company.
What are the effective strategic considerations to be taken into account when outsourcing the “handler” function of ARTLAS PTE LTD.
Choose 2-3 from any of the theory below
Economic Theories -Economies of Scale/ Transaction cost economics
Social Networking Theory
Social Exchange Theory
Organizational Capital Theory
Human Resource Outsourcing
Types of HR Activities
Relational and Transactional HRM Activities
The Conceptual Model: Six Dimensions of HRM Activities Relevant to Outsourcing ……..
Complexity / Repetitiveness /Firm-Specificity / Interdependency / Expertise / Organizational Capital Creation
Split into 2 chapters relating to theory you chose
Context (including key literature)(2,000 words)
Methodology and method of inquiry (1,500 words)