Management of Transparency in Outsourcing - A Case of ZCAS
AbstractThis paper contributes to the on-going studies on outsourcing, as within the recent past, most of the outsourcing-related studies have focused on process control and the understanding of decision determinants of process control. With respect to outsourcing, this has been an attractive option for management, as its specific objectives impacts on the organisation’s performance and stakeholder value. However, management of transparency in outsourcing still requires more confirmation from research. Whenever researchers look at public and private organisations’ reports with regard to abuses, it bears negatively on economic impact. Much of the evidence that has been found is often based on process-related measures, with little discussion on management of intra-organisational relationship. These reports on outsourcing effects raise some questions that are fundamental for empirical research. Considering the impact of transparency in outsourcing on the organisation’s operational performance measures and perceived value, management’s focus has been on strategic perspective with the tactical role given little attention. This study has been done with a focus towards empirical examination of the impact of management’s role in ensuring transparency in outsourcing of goods and services on the organisations’ performance and value. The results are based on a sample of 299 respondents from ZCAS taken through a survey of the stakeholders for the outsourced services. The reference point of concern requiring transparency and management influence is from the publicly-available auditor’s report showing abuses and other vices. This is to help understand why and what similar management challenges facing departments operating in the public sector and how these challenges affect the institutions with regard to transparency in outsourcing. This research has made a number of contributions to both theory and practice. First, it has provided some insight to the empirical studies by examining the role of management in ensuring transparency in outsourcing and how transparency impacts on firms’ performance for the achievement of perceived value for stakeholders. Secondly, an empirical study on management relations in outsourcing for the stakeholder trust has been covered. Thirdly, this study is aimed at influencing management to take a leading role in ensuring transparency in outsourcing in order to obtain value. The papers conclusion is based on management assumptions on the inadequate communication with employees concerning rationale for outsourcing decisions.
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