Strategic Global Outsourcing and Offshoring

The essence of the individual assignment is to apply various theoretical frameworks and
other module materials to a scenario where you are acting as an outsourcing consultant
for a company. Your credibility as a consultant depends on you being able not only to
provide relevant advice, but also to demonstrate that your advice is based on analysis of
the lessons learnt (i.e., past experience and knowledge) in similar or related situations.
Therefore, when providing advice, you need to support your recommendations with
examples of how other companies have dealt with similar issues. Your examples should
come from analysis of the case studies included in the module textbook (The Handbook
of Global Outsourcing and Offshoring (2015), 3
rd edition by Oshri, Kotlarsky and
Willcocks) and demonstrate that you understand the situation/issue and how it has been
dealt with in each case. You can also include real-life examples from professional media
(e.g. Outsourcing Magazine, CIO magazine, Business Week) and official company websites.
You are an outsourcing consultant hired by a UK-based Bank. Three months ago, the
bank has merged with another, smaller bank that is specializing in online banking
services and since the merger has been struggling to integrate IT systems and services
between the two banks. Different IT infrastructures, software applications, and
inconsistencies in services that the two banks have been offering to their customers
created the needs to standardize the IT infrastructure and centralize provision of ITenabled services (support functions and online banking services) as a matter of strategic
priority. Since the Bank does not have enough in-house expertise to devise such
transformation, outsourcing is considered the way forward. The Bank has limited
experience with outsourcing, therefore it was decided to hire an experienced
outsourcing consultant (You).
As a consultant you received the following brief describing background and key
characteristics of the two banks that have merged:

Bank A Bank B
Old, traditional bank, with
physical offices in large cities in
the UK (costs associated with
running these offices are high)
Relatively new bank (“born in the
cloud”); is only providing online
banking services, no physical offices
for the customers to visit. Employees
are based in one facility in a brain-park
outside Birmingham.
Extensively use marketing to attract
Limited outsourcing experience.
The tendency has always been
to do in-house whatever
possible. Lately started
experimenting with outsourcing
some of support functions: last
2 years have been outsourcing
accounting and HR management
Occasionally have been using
external marketing agency to
advertise new banking products
Have extensive outsourcing
experience, as some of the functions
such as IT helpdesk for the bank’s
employees, data centre, IT
infrastructure and maintenance of
online banking services have always
been outsourced.
Data centre, IT helpdesk,
banking-product development,
application development and
maintenance (still have some
legacy applications to support)
Call centre, advisory, marketing,
banking-product development,
mortgage portfolio, investment
portfolio and risk management
for in-house
300 employees
Average age 44 years
50 employees
Average age 27
margins for
5% 12%

You need to provide detailed report with your recommendations regarding how should
the Bank approach the challenge of standardizing the IT infrastructure and centralizing
provision of IT-enabled services.
Your report should include 3 parts, in total 8 recommendations:
Part 1: Decision-making (45% of the mark)
1) What sourcing models should the Bank consider? Identify potential benefits
and risks associated with these models, from the Bank’s perspective.
2) What supplier configurations the Bank should consider? How to approach
supplier selection?
3) What alternative types of contracts should be considered and why?
4) What knowledge/skills the Bank needs to retain (or develop in-house if don’t
have now) and why?
Part 2: Transition and ongoing management of the outsourcing relationship. (45% of
the mark)
5) How to design the transition of IT systems and services from the Bank to the
6) What governance mechanisms should the Bank implement in order to ensure
that delivery of the outsourced services meets Bank’s expectations?
7) What formal and informal aspects of the relationship with outsourcing
supplier(s) should the Bank develop and why?
Part 3: Future outlook (10% of the mark)
8) Looking ahead, consider potential areas to achieve innovation, and challenges
that the Bank may face.
Length of the report: 3000 words (maximum), not including references and appendices.
Use appendices only if absolutely necessary.
List of case studies from the Handbook to use for finding relevant examples:
Pactera Technology International: An Emerging Global Chinese Player, pp. 20-23
A Global Operating Model that Exploits Cloud Computing Services, pp. 42-50
The Giant Awakens: Sheen Software Systems Considers China for Offshore IT
Outsourcing, pp. 96-97
Backsourcing Cheque-Cheking Service, pp. 119-121
Tata Consultancy Services: Building Capabilities, pp. 151-157
JP Morgan Chase: To Outsource or Not Outsource? pp. 173-174
The Key Knowledge Management Challenges in the Outsourcing Project Between
ABN AMRO and TCS, pp. 201-204

In a Russian Sauna with the Dutch Manager, pp. 275-278
GlobalSoftware, pp. 282-285
GlobalAirline, pp.290-291
WNS Buys Aviva Captive Centres, pp. 299-300
KPN: Challenging Suppliers for Innovation, pp. 321-323
Assessment criteria and expectations:

Assessment criteria Expectations
1) To demonstrate that you are familiar
with module materials and able to
articulate how theoretical and practical
concepts and frameworks included in the
materials could be applied to the specific
situation of the Bank.
I expect to see that you use relevant
module materials. Using additional
theoretical and practical frameworks would
add point ONLY if they are used in addition
(and not instead of) the core module
2) To demonstrate that you are able to
analyse contextual characteristic of the
contemporary global business, economic
and political environment; can take into
account relevant social and cultural
aspects; and up to date with technological
developments that are affecting global
outsourcing market.
I expect you to take relevant contextual
aspects into account when analysis the
situation that the Bank is facing
(your recommendations should be tailored
to the specific situation, and not to be too
general, and not copied from the textbook)
3) To demonstrate that you are able to
analyse real-life case studies, and to apply
lessons learnt to a new situation (the
I expect that every recommendation you
make to be illustrated with examples from
the case studies included in the Handbook.
Including additional real-life examples from
professional media (e.g. Outsourcing
Magazine, CIO magazine) and official
company web-sites would add points ONLY
if they are used in addition (and not instead
of) the case examples.

Other matters
1. Late assignments
Late assignments will be dealt according to ABS rules.

2. Citations of Sources
Whatever work you submit must be yours. Claiming work written by others to be your
own is plagiarism, a serious academic offense which will not be tolerated. You are
encouraged to use any source of information available but whenever you quote directly
you must use quotation marks around your direct quote and insert reference to the
source if you modify using your own words what has been said in the source.
All sources must be clearly and carefully referenced and included at the end of your
In the case of a book:
Oshri, I., J. Kotlarsky and L. P. Willcocks (2015) “The Handbook of Global Outsourcing and
Offshoring”. London, Macmillan.
In the case of a journal article:
Su, N., N. Levina and J. W. Ross (2015) “The Long-Tail Strategy for IT Outsourcing.” MIT
Sloan Management, 57(2), pp. 1-9.
In case of company web-site: , accessed on 1
December 2016
Submission Date & Time:
Assessment Weighting for the Module:

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