Municipalities in South Africa are increasingly outsourcing municipal services, including basic municipal services such as water and sanitation services and refuse collection and disposal. The Constitution places onerous duties on municipalities to respect and promote human rights in the exercise of the powers and the performance of their functions. These duties are particularly prevalent when a municipality is deciding on the optimal service delivery mechanism for basic municipal services. It is thus crucial for the policy and legislative environment regarding municipal outsourcing to be firm and clear and for the municipality to ensure satisfactory implementation of outsourcing projects, including contract management. This thesis examined the policy and legislative framework governing municipal outsourcing and described the general features of a range of current South African outsourcing contracts. It also questioned whether the policy and legislative framework are consistent in their objectives and assessed how these objectives are carried through and translated into the contract drafting and implementation phases of outsourcing.

<p>The privatization of public prisons has caused much controversy in South Africa as well as internationally. However, it should be noted that the level of resistance to privatisation within the South African context has been minimal by international standards. It is not clear what might have contributed to this quiet approach given the fact that there are many anti-privatisation campaigns driven by the labour movement and civil society groups in South Africa. This research investigation focused on the privatisation of prisons and prison services in South Africa and has explored the various advantages and disadvantages that exist in this respect.</p>

“Outsourcing has been touted as the ideal way for organisations to reduce cost, focus on core business processes, improve services, enhance skills, reduce time-to-market and increase overall competitive advantage,” (Power, Bonifazi and Desouza, 2004). A pertinent question is therefore ‘Can South African companies in the pharmaceutical industry remain competitive by outsourcing, what is driving these companies to outsource and how effective has the initiative been?’ The purpose of the study is to identify the extent to which various key factors play an influential role in motivating pharmaceutical companies in SA to outsource. South African pharmaceutical companies as part of the global arena, have to continually assess the feasibility of manufacturing their products in-house or allowing contract manufacturers to manufacturer and or pack on their behalf. The research questions posed in this research were: why are companies outsourcing, what is outsourcing and what is happening amongst the South African pharmaceutical companies? The results of this qualitative rich study have shown that outsourcing in SA is not just about cost savings or reduction in product costs but that this process is able to afford the contract giver the ability to tap into additional capabilities (facilities, technology and skill) of their outsourcing partner. Outsourcing has enabled the contract manufacturers in SA to assist the contract givers in numerous areas such as cost reduction, cost saving, reduction in capital investment, increased flexibility and allowed the contract givers to focus on their core competencies. The implementation of off shoring may result in South African contract givers incurring additional ‘hidden costs’ which may be attributed to quality problems, reduced flexibility of transport, product write-offs (due to large volumes ordered), currency fluctuations and additional resources that may required (technology transfer, documentation review, and validation). The responses from the research questionnaires indicate that the key drivers of outsourcing in South African are aligned with those identified in global ii marketplace by Jiang and Qureshi; Copestake and Lau and Zhang (2006). The main drivers being profitability increase (cost reduction, cost saving and capital reduction), strategic considerations (focus on core competence, increased flexibility and to facilitate market penetration) and access to knowledge and skills. The key for the South African outsourcing service providers lies in ensuring that their clients are kept satisfied so that they can minimise the threat of offshore providers. The results of the study are line with Momme and Hvolby (2001) suggestions in which they advocate that organisations only outsource when suppliers have a comparative advantage and that an organisation proactively have a stronger focus on its internal core business areas. In SA governmental changes in regulations/ laws such as those addressing parallel importation, patents, foreign investors and trade would impact on the countries national competitive advantage. However although outsourcing is highly beneficial, organisations need to carefully manage the process, identify hidden costs, risks and initiate preventative measures to ensure success. This study was the first step towards conceptualising the impact of the key drivers, decision making and strategic issues on the South African pharmaceutical manufacturing industry. / Graduate School of Business Leadership / MBL

Approved for public release; distribution is unlimited. / Since 1997, Government agencies have been implementing seat management approaches to information technology contracting. Also known as desktop outsourcing, seat management is a process whereby agencies outsource all maintenance and ownership of their desktop computers, including all required hardware, software, network support, maintenance, and help desk services with pricing computed an a per user - or per seat - basis. The Navy Marine Corps Intranet - or NMCI - is arguably the largest and most complex seat management effort undertaken to date. It is designed to eventually cover approximately 360,000 Navy and Marine Corps users. This thesis explores the seat management method of contracting and the challenges inherent in this method of acquiring desktop computing power. Such challenges include benchmarking technical performance requirements, establishing performance measures, creating effective incentives, preparing for the transition to seat management, and managing the required culture change. The NMCI program's approach to addressing these challenges is analyzed and recommendations are provided as to where improvements can be made in order to increase the likelihood that NMCI will achieve its expected benefits. / Department of the Navy author (civilian).

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2018. / South Africa for more than three decades has been described as the economic capital of Africa because of its level of industrialization, production, interactions and business transactions with other companies locally, nationally, regionally and globally. This situation goes hand in hand with the continual emergence in South Africa of business organizations, notably major international groups or their subsidiaries, other foreign or national large corporations, as well as small and medium enterprises (SMEs). The SME sector has significantly emerged in industries such as retail and manufacturing that produce a wide variety of consumer goods and related services. They produce services and goods that are destined for both local and international consumption. Similarly, they are also sourcing goods and services from local or international suppliers. Consequently, SMEs are involved in a complex supply chain management challenges and are exposed to the chain’s intense logistics activities. The main objective of this study was to determine how outsourcing can improve effectively the logistics performance of wine producing SMEs in the manufacturing sector. The findings from the interviews conducted with 16 personnel responsible for logistics performance from selected small and medium wine producers in Constantia, Stellenbosch, and Paarl, offer support for the assumption that outsourcing is a key to logistics performance in SMEs. The general outcome of the study suggests that logistics performance of SMEs is dependent on their ability to manage outsourcing of logistics services. Thus, knowing beforehand the “what for” of outsourcing is very important determinant for driving logistics performance, especially defining, assessing and measuring the performance objectives the SMEs expect from outsourcing and choosing logistics partners that can meet these objectives.

Made available in DSpace on 2015-12-03T18:35:15Z (GMT). No. of bitstreams: 1 Geuma_Campos_Nascimento.pdf: 498560 bytes, checksum: a25ffb1c6b6994acd6a2450db959cb73 (MD5) Previous issue date: 2011-03-10 / The key to understanding the relationship between provider and services contractor of Business Process Outsourcing - BPO, nationally known as business process outsourcing can not be technological determinism and economic in order to reduce costs. It is necessary that those factors involving social relationships, and lived experiences of the other side, the technology, the cultural forms and the people involved are part of the studies. This work sought to identify and analyze the perceptions of managers of companies headquartered in Sao Paulo, on the administrative and financial services for them contracted along services organizations in the BPO modality. We tried to identify and analyze the form of contracting and execution of services and investigate the form of the management of contracts and whether there are factors that cause information asymmetry in this relationship. The motivation for conducting this work was the finding, until the present date, the lack of studies to identify and analyze the relationships between contractors and providers of these services. It is an empirical investigation, exploratory, qualitative and descriptive, supported by bibliographic and documentary research. For the data collection methods were used to survey research (depth interviews and questionnaires). The bibliographic research required the definition of outsourcing and its features, particularly for administrative and financial services, along with the study of contract theory of the informational asymmetry. Initially, were realized in-depth interviews with managers of six contractors of outsourced services, headquartered in Sao Paulo. The data were analyzed using the content analysis. We tried to know the reality, understand and describe the perception of respondents. Following on, we expanded the sample and was employed a structured questionnaire answered by 23 subjects. Data were analyzed with the use of cluster analysis. It was found that 74% of survey respondents declared themselves satisfied with the services received in terms of quality, deadlines met, the technical reliability of the service provider. The respondents agree that there is management of both sides and informational asymmetry has negatively affected the contractual relationship. We identified the need for further research on the outsourcing of administrative and financial services. / A chave para a compreens??o da rela????o entre prestador e contratante dos servi??os de Business Process Outsourcing - BPO, nacionalmente conhecida como terceiriza????o de processos, n??o pode ser o determinismo tecnol??gico e econ??mico com vistas ?? redu????o de custos. ?? necess??rio que aqueles fatores que envolvem as rela????es sociais, experi??ncias vividas de um e do outro lado, a tecnologia, as formas culturais e as pessoas envolvidas sejam parte integrante dos estudos. Este trabalho buscou identificar e analisar as percep????es dos gestores de empresas sediadas na grande S??o Paulo, sobre os servi??os administrativos e financeiros por elas contratados junto a organiza????es de servi??os na modalidade BPO. Buscou-se identificar e analisar a forma de contrata????o e execu????o dos servi??os e investigar a forma de gest??o dos contratos e se h?? fatores causadores de assimetria informacional nesta rela????o. A motiva????o para a realiza????o do trabalho foi a constata????o, at?? a presente data, da aus??ncia de estudos que identificassem e analisassem as rela????es entre prestadores e contratantes desses servi??os. ?? uma investiga????o de car??ter emp??rico, explorat??ria, qualitativa e descritiva, apoiada por pesquisa bibliogr??fica e documental. Para a coleta de dados foram usados os m??todos de pesquisa survey (entrevista de profundidade e question??rio). A pesquisa bibliogr??fica requereu a defini????o da terceiriza????o e suas caracter??sticas, em especial para os servi??os administrativos e financeiros, juntamente com o estudo da teoria dos contratos a da assimetria informacional. Inicialmente, foram realizadas entrevistas de profundidade com os gestores de seis empresas contratantes de servi??os terceirizados, sediadas em S??o Paulo. Os dados obtidos foram analisados com o uso da an??lise de conte??do. Buscou-se conhecer a realidade, compreender e descrever a percep????o dos entrevistados. Na continuidade, foi ampliada a amostra e lan??ou-se m??o de question??rio estruturado respondido por 23 sujeitos. Os dados foram analisados com o uso da an??lise de cluster. Constatou-se que 74% dos respondentes da pesquisa declararam-se satisfeitos com os servi??os recebidos em aspectos de qualidade, prazos atendidos, confiabilidade sobre os aspectos t??cnicos do prestador de servi??os. Os respondentes concordam que h?? gest??o de ambos os lados e a assimetria informacional n??o tem afetado de forma negativa a rela????o contratual. Identificou-se a necessidade de outras pesquisas sobre a terceiriza????o de servi??os administrativos e financeiros.

在實踐中，越來越多製造企業採用外包物流给专业的第三方物流供应商的方式來降低物流成本。然而，在學術研究領域，大部分現有的物流外包研究主要以描述性和規範性的研究為主，缺乏解釋性或預測性的研究。本文嘗試整合交易成本經濟學、基於資源觀和制度理論，來驗證和解釋物流外包的驅動因素及績效影響。本研究從大陸及香港的200家上市母公司中收取了250家的子公司作為研究樣本，並採用了結構方程模型、層次回歸、路徑分析的統計方法來檢驗相關的理論假設， 研究的結果表明： / 在研究一中，本研究結果發現內部生產資源和能力，例如物流基礎設施、物流資訊系統、內部物流技術，沒有直接影響物流外包。但是，介面性質的資源或能力，例如管理第三方物流供應商的能力和其他職能系統的使用，與物流外包的水準呈正相關。最後，研究還表明內部生產資源和能力通過介面性質的能力，例如管理第三方物流供應商的能力，影響著外包。 / 在研究二中，本研究發現，基於頻率和特質的模仿壓力正向地影響物流外包，基於結果的模仿壓力對物流外包沒有顯著的影響。當製造商對他們內部物流需求不確定，基於頻率的模仿壓力對物流外包的影響將會降低。同時，過高的外部市場不確定性將增加基於結果的模仿壓力對外包物流採用的影響。 / 在研究三，本研究將物流活動分類為基於資產的物流活動和基於非資產的物流活動，然後建立物流外包-運營績效-財務績效的實證模型。實證結果表明基於資產的物流活動外包顯著影響著交付績效和財務績效，但是不影響成本和柔性績效。然而，基於非資產物流活動外包直接顯著影響著成本和柔性績效，但不影響交付績效和財務績效。總而言之，基於資產的物流活動外包直接影響財務績效，但有限影響著運營績效，而基於非資產的物流活動外包通過運營績效來影響財務績效。 / 本文對物流外包和運營管理領域有如下貢獻。首先，本文提出及驗證了資源-能力-外包的理論模型，拓展了傳統資源觀的應用。其次，本研究通過驗證宏觀制度壓力對內部物流運作的影響將制度理論擴展到物流和運營管理領域。最後，本研究通過對基於資產及非資產物流業務外包影響的研究，對運營及財務績效的提升提供了新的啟示。 / An increasing number of manufacturers outsource their inbound and outbound logistics activities to Third-Party-Logistics (3PL) providers to reduce logistics cost. Most previous studies on logistics outsourcing are descriptive and prescriptive in nature, and thus devoid of explanatory or predictive orientation. This dissertation will investigate and explore the antecedents and consequents of logistics outsourcing by integrating transaction cost economics, resource-based view, and institutional theory. Several key hypotheses are tested using structural equation modeling (SEM), hierarchical multiple regression (HMR) and path analysis (PA) based on data collected from 250 subsidiaries of 200 publicly listed manufacturing companies in Mainland China and HK. / In study 1, the results show that internal production resources and capabilities, such as, logistics infrastructure, logistics information systems, internal logistics skill, do not exert a direct influence on logistics outsourcing. Interface resources or capabilities, however, such as 3PL management capabilities and the usage of other functional systems, are positively associated with the degree of logistics outsourcing. At last, the findings also indicate that internal production resources and capabilities influence outsourcing through interface capability, such as 3PL management capability. / In Study 2, this research reveals that frequency-based and trait-based imitative pressures are related with degree of logistics outsourcing, while outcome-based imitative pressures are not. The influence of frequency-based imitative pressure on logistics outsourcing will be decreased when manufacturers are more uncertain about their internal logistics requirements and demand. On the other hand, high external market uncertainty will increase the effect of outcome-based imitative pressure on logistics outsourcing. / In Study 3, the research classifies logistics activities into asset-based logistics activities and non-asset logistics activities and then builds outsourcing-operational performance-financial performance model. Empirical results show that asset-based logistics outsourcing significantly impacts both delivery performance and financial performance, but not cost and flexibility performance. However, non-asset-based logistics outsourcing significantly influences both cost performance and flexibility performance directly, but not delivery and financial performance. In summary, asset-based logistics outsourcing effects financial performance directly, but slightly influences operational performance, while non-asset-based logistics outsourcing influences financial performance mainly through operational performance. / This dissertation makes several contributions to logistics outsourcing & operations management. First, this dissertation proposes and empirically tests a model of resource-capability-outsourcing and thus extends the traditional resource-based view model. Second, this dissertation extends institutional theory into logistics and operations management area by linking macro-institutional pressures to internal logistics operations. Third, this study provides insights on the effects of logistics outsourcing on operational and financial performance by examining the effects of asset-based and non-asset based logistics outsourcing. / Detailed summary in vernacular field only. / Detailed summary in vernacular field only. / Detailed summary in vernacular field only. / Detailed summary in vernacular field only. / Detailed summary in vernacular field only. / Zhuang, Bochao. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2012. / Includes bibliographical references (leaves 117-137). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstract also in Chinese; appendix 5 in Chinese. / ABSTRACT --- p.I / ABSTRACT (CHINESE) --- p.III / ACKNOWLEDGEMENTS --- p.V / LIST OF FIGURES --- p.IX / LIST OF TABLES --- p.X / LIST OF APPENDICES --- p.XI / Chapter Chapter 1 --- Introduction --- p.1 / Chapter 1.1 --- Research Motivation --- p.1 / Chapter 1.2 --- Research Objectives --- p.2 / Chapter 1.3 --- Research Methods and Framework of this Dissertation --- p.3 / Chapter Chapter 2 --- Theoretical Background --- p.5 / Chapter 2.1 --- Transaction Cost Economics and Outsourcing --- p.5 / Chapter 2.2 --- Resource-based View and Outsourcing --- p.9 / Chapter 2.2.1 --- RBV and New Streams in RBV --- p.9 / Chapter 2.2.2 --- Resources& Capabilities Classification & Empirical Model in RBV --- p.11 / Chapter 2.2.3 --- Conceptual Work Linking RBV with Outsourcing --- p.13 / Chapter 2.3 --- Institutional Theory and Outsourcing --- p.14 / Chapter 2.4 --- Multi-Theoretical Frameworks from TCE, RBV and IT --- p.16 / Chapter Chapter 3 --- The Effects of Organizational Resources and Capabilities on Logistics Outsourcing --- p.21 / Chapter 3.1 --- Introduction --- p.21 / Chapter 3.2 --- Theoretical Background and Hypotheses --- p.22 / Chapter 3.2.1 --- Infrastructure and Outsourcing --- p.22 / Chapter 3.2.2 --- Capabilities and Outsourcing --- p.24 / Chapter 3.2.3 --- Infrastructure-Capabilities-Outsourcing --- p.25 / Chapter 3.3 --- Research Methodology --- p.28 / Chapter 3.3.1 --- Questionnaire Design and Measures --- p.28 / Chapter 3.3.2 --- Sampling and Data Collection --- p.30 / Chapter 3.3.2 --- Measurement Quality --- p.33 / Chapter 3.4 --- Hypotheses Tests and Results --- p.35 / Chapter 3.5 --- Discussion --- p.37 / Chapter 3.6 --- Conclusion and Limitations --- p.42 / Chapter Chapter 4 --- The Effects of Imitation and Uncertainty on Logistics Outsourcing --- p.44 / Chapter 4.1 --- Introduction --- p.44 / Chapter 4.2 --- Theoretical Background and Hypotheses --- p.44 / Chapter 4.2.1 --- Imitative Pressures and Outsourcing --- p.45 / Chapter 4.2.2 --- Uncertainty, Imitative Pressure and Outsourcing --- p.50 / Chapter 4.3 --- Research Methodology --- p.54 / Chapter 4.3.1 --- Questionnaire Design and Measures --- p.54 / Chapter 4.3.2 --- Sampling and Data Collection --- p.56 / Chapter 4.3.3 --- Measurement Quality --- p.56 / Chapter 4.4 --- Hypotheses Tests and Results --- p.59 / Chapter 4.5 --- Discussion --- p.61 / Chapter 4.6 --- Conclusion and Limitations --- p.69 / Chapter Chapter 5 --- The Effect of Logistics Outsourcing on Operational and Financial Performance --- p.71 / Chapter 5.1 --- Introduction --- p.71 / Chapter 5.2 --- Theoretical Background and Hypotheses --- p.72 / Chapter 5.2.1 --- Literature Review on Outsourcing-Performance --- p.72 / Chapter 5.2.2 --- Outsourcing Types and Operational Performance --- p.74 / Chapter 5.3 --- Research Methodology --- p.79 / Chapter 5.3.1 --- Questionnaire Design and Measures --- p.79 / Chapter 5.3.2 --- Sampling and Data Collection --- p.81 / Chapter 5.3.3 --- Measurement Quality --- p.81 / Chapter 5.4 --- Hypotheses Tests and Results --- p.84 / Chapter 5.5 --- Discussion --- p.85 / Chapter 5.6 --- Conclusion and Limitations --- p.91 / Chapter Chapter 6 --- Overall Conclusions and Future Research --- p.93 / APPENDICES --- p.96 / References --- p.117

Since the late 1970s, the world has experienced a wave of microeconomic reform that has resulted in the privatisation of many previously State-owned assets, as well as other reforms directed at improving the efficiency of government business enterprises. This dissertation focuses on one important instrument of reform: outsourcing of public-sector service provision. Despite the prevalence of outsourcing, there has been relatively little empirical work analysing the effects of outsourcing at the contract level. This dissertation addresses three important empirical issues related to outsourcing. First, analysis of the magnitude and sources of cost savings associated with outsourcing was undertaken using a present value costing framework. Unlike other studies, this study includes transaction costs and considers how costs change over the life of the contract. The results indicate that savings of 37 per cent were achieved in the first year of contract operation ?savings that were achieved through a combination of reductions in pay and conditions, labour-saving technological change and reductions in inefficiency. Secondly, the dissertation considered why the level of savings achieved fell to 24 per cent following contract variations at the end of year 1. Some evidence indicated that this may have been due to opportunistic behaviour or hold-up: that the contract service provider may have taken advantage of contractual incompleteness and increased its price during the course of contract renegotiations. Although hold-up is an important theme in the literature on contracts, little empirical work has been undertaken in verifying its existence. Thirdly, the impact of contract design on the efficiency of outsourcing arrangements was analysed. It is well known that contract theory predicts a trade-off between incentives and risk. Using the standard principal-agent framework, a simple model is developed to analyse the effects of demand uncertainty on the risk-incentive trade-off. This model is then tested using data from maintenance services contracts at two corporatised water retailers in Melbourne: an environment that is characterised by high levels of both cost and demand uncertainty. Using a general linear regression model, the results obtained indicate that the moral hazard effect dominated the risk premium effect.

This research questions whether there is evidence that contract performance measurement is influenced by the social structure in which it is embedded. I question whether the strong ties between a prime contractor and its subcontractors lead to higher performance scores in public contracting. I also question if prior relations between a Georgia Department of Transportation (GDOT) manager and the private firm project manager whose work is being evaluated lead to higher performance scores.

While there is an ever increasing adoption of e-sourcing, where a buyer auctions off procurement contracts to a small group of pre-qualified suppliers, there is a lack of understanding of the impact of dynamic bidding process on procurement outcomes and bidding behavior. To extend the knowledge of this important issue, in this thesis, we explore empirically the value of online procurement auction on cost reduction, quality management, and winner selection from the buyer's perspective. We also explore how incumbent status affects the procurement outcomes. From suppliers' perspective, we characterize their bidding behavior and examine the effect of incumbent status on bidding. First, we collect detailed auction and contract awarding data for manufacturing goods during 2002-2004 from a large buyer in the high-tech industry. The rich data set enables us to apply statistical model based cluster technique to uncover heterogeneous bidding behavior of industry participants. The distribution of the bidding patterns varies between incumbent and non-incumbent suppliers. We also find that the buyer bias towards the incumbent suppliers by awarding them procurement contracts more often and with a price premium. Next, focusing on recurring auctions, we find that suppliers bid adaptively. The adaptive bidding is affected by the rank of suppliers' final bids. Finally, with field data of procurement auction for legal services, we demonstrate that service prices are on average reduced after dynamic bidding events. Most interestingly, the cost savings are achieved without the sacrifice of quality. Incumbent winners' quality is higher, on average, than the quality of buyer's supplier base before the auctions, while non-incumbent winner's quality is lower. These findings imply that the main value of online procurement auctions for business services comes from incumbents in the form of reduced price and enhanced quality. We find that after adjusting for incumbents' higher quality, incumbent bias disappears. Our results also imply that the buyer might possess important information about the incumbents, through past experiences, that cannot be easily included in the buyer's scoring function due to uncodifiability.