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Which practice is recommended for a successful outsourcing programme?
ASwitch vendors every year to keep prices down
BKeep contact with the vendor to a yearly review
COutsource first and define the problem afterwards
DEngage partners regularly so that trust is built
Answer & Solution
Correct answer: D. Engage partners regularly so that trust is built
1. Managers are told to identify a specific business problem first, then consider all possible solutions.
2. Only then do they decide whether outsourcing the work is the appropriate answer.
3. They should develop a strategic partnership with vendors and a framework promoting seamless collaboration and communication.
4. They should engage with outsourcing partners on a regular basis to instil trust between the two entities.
5. Annual contact and yearly vendor switching would defeat the long-term partnership being described.
6. Outsourcing before defining the problem inverts the recommended order.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.8 Outsourcing_
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