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Managing outsourcing process: applying six sigma

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Purpose ‐ The decision to manage an outsourced project is easy but to provide client satisfaction is a difficult process. Outsourcing has been broadly accepted due to the extensive and useful business need they provide, even in those situations where the planning/decision support paradigm provided by the system poorly fits the business. The purpose of this paper is to propose an effective modeling methodology for managing the process of outsourced projects for the clients. Design/methodology/approach ‐ The paper proposes a cimosa, O3ML and business outsourcing process using DMADV methodology -- an effective modeling methodology for managing the process of outsourced projects for clients. Findings ‐ The hybrid governance structure consists of inter-organizational coordination mechanisms, inter-organizational systems and social control. Companies that wish to offshore their business process should select the service providers that can facilitate setting up such hybrid governance structure. Research limitations/implications ‐ The limitations of managing the outsourced paradigm (IT or business process), i.e. redesigning work and assigning responsibilities, need to be clearly recognized if they are to be dealt and delivered with in an effective manner. Practical implications ‐ Six sigma is a business process improvement strategy, which essentially checks that the performance of the business is according to the needs of the client. The end-user of a product or service is a client and thus the deliverable of a project should be according to the needs of the client. Originality/value ‐ The paper is of value in proposing an effective modeling methodology for managing the process of outsourced projects for clients.
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Keywords: Outsourcing; Process management; Six sigma

Document Type: Research Article

Publication date: November 7, 2008

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