“Efficiency” is the buzzword for a competitive company [Meckl 99, p.7]. This especially is a topic for the secondary activities of the value creation chain. The value of Management Support, as part of the intern services of an enterprise, is hard to numeralise.
For this reason ‚Outsourcing’ is a big issue. Services and infrastructures which are not one of the enterprise’s core businesses are placed to third party providers.
“Do what you can do best – outsource the rest!” is a familiar quotation that emphasizes to concentrate on core activities.
From the economical point of view the factor of minimizing costs is a main reason for deriving single tasks from an enterprise. Bigger Outsourcing-Projects have to be in line with the strategical orientation of the enterprise.
The present paper focuses on the potentials of Outsourcing Management Support System (MSS) Solutions. Different forms of Outsourcing are examined and their feasibility is discussed. Information is a sensitive resource. The question is how MSS-Solutions qualify for outsourcing-projects.
Table of Contents
1 Introduction
1.1 Preamble
1.2 Proceeding structure
2 Basics
2.1 Management Support Systems
2.2 Outsourcing
3 Outsourcing MSS-Solutions
3.1 Possible forms of Outsourcing MSS-Solutions
3.1.1 Organisation
3.1.2 Technology
3.2 Chances of Outsourcing MSS-Solutions
3.2.1 Financial Aspects
3.2.2 Strategical Aspects
3.3 Risks of Outsourcing MSS-Solutions
3.3.1 Financial Aspects
3.3.2 Strategical Aspects
4 Conclusion
Research Objective and Core Topics
The paper examines the potential and feasibility of outsourcing Management Support System (MSS) solutions. It addresses how MSS components can be effectively delegated to third-party providers while balancing cost efficiency with strategic organizational goals.
- Conceptual foundations of Management Support Systems and Outsourcing.
- Classification of outsourcing models for IT and MSS services.
- Strategic and financial opportunities for outsourcing management solutions.
- Identification of core risks, including moral hazard and transaction costs.
- Potential of modern technologies like web services and data warehousing in an outsourcing context.
Excerpt from the Book
3.1.1 Organisation
To achive reasonable results by outsourcing management support systems, business process outsourcing (BPO) offers appropriate possibilities for a successful partnership. As described in chapter 2.2 business process outsourcing qualifies a business process, in which a service provider takes over an essential part of the enterprize’s IT-functions [Fröschl 99, p. 458].
Figure 2 shows the classification of BPO. MSS-Solutions are in line with application management. The service provider is responsible for the maintenance, the customisation and the further development of MSS-Solutions. This could be based on a long-term professional-service-contract [Fröschl 99, p. 458f].
The characteristics of application management are:
Utilisation of extern IT-know-how, e.g. in consultancy, MSS-development and –customization.
Process that offers the customer continuous consultancy and assistance in actualizing and optimizing his MSS-Solution.
The Customer himself is responsible for hardware - the IT-outsourcing service provider is responsible for operation, maintenance and function of the software.
Summary of Chapters
1 Introduction: This chapter introduces the topic of outsourcing in the context of increasing efficiency and outlines the structure of the paper.
2 Basics: This section defines Management Support Systems and the general concept of outsourcing as a business strategy.
3 Outsourcing MSS-Solutions: This chapter analyzes specific organizational and technological forms of outsourcing MSS, discusses the financial and strategic opportunities, and evaluates the risks involved.
4 Conclusion: The concluding chapter summarizes the multidimensional nature of outsourcing MSS solutions and suggests that integration of external data and modern standards may improve the acceptance of these systems.
Keywords
Outsourcing, Management Support Systems, MSS, BPO, IT-Outsourcing, Business Process Outsourcing, Application Management, Decision Support, Data Warehouse, Moral Hazard, Transaction Cost Economics, Strategical Management, Web Services, Efficiency, Cost Optimization
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the potentials, risks, and organizational forms of outsourcing Management Support Systems (MSS) solutions within a corporate environment.
What are the core thematic areas covered?
The text covers the definition of MSS and outsourcing, specific organizational and technological models for outsourcing, and the financial and strategic implications of these decisions.
What is the research goal?
The goal is to determine how MSS solutions qualify for outsourcing projects and to evaluate the feasibility of delegating these critical functions to third-party providers.
Which scientific methodology is applied?
The author uses a literature-based conceptual approach, referencing existing theories such as the principal-agency theory and transaction cost economics to analyze outsourcing risks.
What does the main body discuss?
The main body breaks down the classification of outsourcing, identifies specific opportunities (like cost reduction and 'active MIS'), and addresses critical risks such as moral hazard and loss of control.
Which keywords best characterize the work?
Key concepts include Outsourcing, Management Support Systems (MSS), Business Process Outsourcing (BPO), and Transaction Cost Economics.
How does the author define 'Moral Hazard' in the context of MSS?
Moral hazard refers to the difficulty the client faces in observing or controlling the service provider, often leading to the provider blaming poor performance on external factors to avoid accountability.
Why is 'specificity' mentioned as a crucial criterion?
Specificity describes the degree of individuality of a service; higher specificity leads to greater dependency on the service provider, which creates a strategic risk for the enterprise.
What role do web services play in the proposed outsourcing models?
Web services are suggested as a modern architectural approach to provide secure, real-time access to executive information, potentially increasing the acceptance of outsourced MSS.
- Quote paper
- Thomas Witte (Author), 2005, Potentials of Outsourcing Management Support System Solutions, Munich, GRIN Verlag, https://www.grin.com/document/48974
