OUTSOURCING VENDOR PERSPECTIVE: EXPLORATION OF VENDOR EFFECTIVENESS IN MEETING CLIENT OBJECTIVES

Jet Mboga
Bloomsburg University

Charles Needham
Walden University

ABSTRACT

The outsourcing decision makers’ shift to global outsourcing saw a phenomenal growth
starting in the 1980s. Decision makers opting to outsource to vendors without in depth analysis
can contribute to 50% failure of their outsourcing initiatives within 5 years. In this case study the
pseudonym company name Red14 Enterprise (R14E) represents the client company in the United
States that is outsourcing the service of warranty claims processing to a vender firm. The purpose
of the study is to explore the components that contribute to the vendor firm’s personnel performing
inadequately in meeting the client’s claim-processing goals. The proposed results contribute to
improving business by illuminating the components associated with personnel’s inadequate
performance in meeting clients’ goals. The implications of social benefit are to motivate
outsourcing firms’ leaders to monitor the efficiency in vendor firms to help prevent outsourcing
projects from failing. The success of outsourcing firms could result in increasing employees’ job
stability and their contributions to their local economies.

Keywords: Outsourcing, employees, operations, performance, cost, failure, vendor, client