Outsourcing in Social Organizations: A Case Study of PHB

Abstract

This paper examines the process of outsourcing with reference to organizations involved in social activities. It is anattempt to identify the factors that affect the process of outsourcing for such organizations and compare the outcome with existing outsourcing models in use. Further, a framework is proposed that links the phases of the entire outsourcing process to strategic planning. The framework includes a logical sequence of key activities with built-in performance measures and expected output for each phase. Since many years, outsourcing has evolved as an important issue for many organizations. The potential for outsourcing has moved from task outsourcing to process outsourcing. However, there are evidences to suggest that organizations are not achieving the desired benefits from outsourcing. Outsourcing decisions are rarely taken within a thoroughly strategic perspective with many firms adopting a short-term perspective and being motivated primarily by the search for short-term cost reductions.The study is based on secondary data, in the form of previously published articles and papers, along with primary data in the form of interviews and a survey. This paper also discusses a strong case study of ‘Pune Heart Brigade’(PHB) in the above reference.