| Title |
Governance as a Key Factor for Ensuring the Sustainability of Outsourcing Models |
| ID_Doc |
73450 |
| Authors |
Sarbu, A; Mateescu, R; Buchmüller, M; Just, V |
| Title |
Governance as a Key Factor for Ensuring the Sustainability of Outsourcing Models |
| Year |
2016 |
| Published |
|
| DOI |
|
| Abstract |
Corporate governance is a mechanism that helps each company to achieve its goals on short and long term, by providing different guidelines to the stakeholders on how to manage the business at an optimum level. During the past ten years, more and more companies especially the large sized ones have decided to outsource part of their business processes, in order to stay relevant on the market and focus on the core competitive functions. When a company starts the collaboration with an external partner, several factors will play a critical role in the success or failure of the future business model. After a certain service is outsourced, the company must ensure the proper functioning of the organizational, political and legal requirements by being able to control and monitor the activities of the new business partner. The governance model quality drives accountability within the management teams and at the same time helps bringing additional value to the organization. If the outsourcing model is performant, then it will allow the company to grow and to further reinvest the profit in research, innovation or acquisition of new products or services. Purpose: The objective of this study is to determine the main dependencies between the corporate governance framework and the sustainability of an outsourcing model within the services industry. Methodology: This paper highlights a part of the results of a doctoral research based on specialized literature review regarding corporate governance models. A comparative analysis was conducted by the authors on several international companies from the services industry in order to assess the governance factors that have a significant influence on the business process outsourcing models integration. Also the research will emphasize the importance of long term governance planning, especially in the context that the benefits of an outsourcing model usually start to appear after the first or second year of collaboration with the external supplier. Results: The outcome of the research shows that in order for a company to have a sustainable outsourcing strategy this needs to be linked with governance processes that take into account different variables like the legal, economic and social environment of each country. In addition it can be observed within the analysis that the international companies allocate specialized resources for monitoring and controlling the governance systems. Value: The research results of this study can be used by companies when deciding to outsource a part of their processes to an external partner in order to assess the main factors of corporate governance that can positively influence the long term business sustainability. |
| Author Keywords |
Corporate governance; business process; outsourcing model; sustainability; performance |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Conference Proceedings Citation Index - Social Science & Humanities (CPCI-SSH) |
| EID |
WOS:000401232800057 |
| WoS Category |
Management |
| Research Area |
Business & Economics |
| PDF |
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