Outsourcing is a typical strategy adopted to address resource shortage or improve efficiency in organizations. This case is focused on public sectors where decision makers must try different ways to increase productivity. In the current study, the main goals include identification and prioritization of the risks of outsourcing processes in the public service sector of a local Electricity Distribution Co. Firm (EDC) in Iran. This study aims to investigate the risks of outsourcing a process in this company, which can have important effects on the overall goals of the organization. An interview and a study on the background of outsourcing the processes in EDC carried out to identify the existing risks and an impact-probability matrix was built based on collected qualitative and quantitative data. The results illustrate the influence of outsourcing management on all the existing criteria. Hidden costs and financial risks are the most likely risks to happen. Financial risks and lowquality service have the most significant effect on objectives. These results prepare a decision-making support framework for outsourcing risk management plan including risk identification and risk assessment for project managers in this company.

Outsourcing Risks: a case study of the Electricity Distribution CO. in Iran

Alì Aghazadeh Ardebili
Methodology
;
Elio Padoano
Validation
;
2018-01-01

Abstract

Outsourcing is a typical strategy adopted to address resource shortage or improve efficiency in organizations. This case is focused on public sectors where decision makers must try different ways to increase productivity. In the current study, the main goals include identification and prioritization of the risks of outsourcing processes in the public service sector of a local Electricity Distribution Co. Firm (EDC) in Iran. This study aims to investigate the risks of outsourcing a process in this company, which can have important effects on the overall goals of the organization. An interview and a study on the background of outsourcing the processes in EDC carried out to identify the existing risks and an impact-probability matrix was built based on collected qualitative and quantitative data. The results illustrate the influence of outsourcing management on all the existing criteria. Hidden costs and financial risks are the most likely risks to happen. Financial risks and lowquality service have the most significant effect on objectives. These results prepare a decision-making support framework for outsourcing risk management plan including risk identification and risk assessment for project managers in this company.
2018
978-3-946856-03-0
https://www.hs-owl.de/fileadmin/diman/Veroeffentlichungen/PEM2018_proceedings_web.pdf
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/2931717
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