Improving the Operating Model to Implement the Outsourced Procurement of Contingent Workforce
Ljungqvist, Michael (2020)
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020051912441
https://urn.fi/URN:NBN:fi:amk-2020051912441
Tiivistelmä
The objective of this study was to develop a more uniform operating model to implement the outsourced procurement of contingent workforce for the Case Company. The business challenge of this study arises from the Case Company’s existing operation model to implement the outsourced procurement of contingent workforce.
For the customer outsourced procurement decreases costs and increases internal efficiency. However, to gain these benefits the customer is required to adapt to new behaviour (major change). Therefore, adapting to new behaviour in the customer organization is critical for the implementation phase to succeed.
There was no uniform way to implement the outsourcing service, all implementations were customer-specific with a high-level of customization. With the existing operating model, it was taking too much time at the customer’s organization to adapt to new behaviour resulting in increased costs, decreased profitability and quality.
This study used the action research approach and both qualitative and quantitative data collection methods. The main data sources in this study include questionnaire, interviews, meetings, researcher’s own observations and internal documentation of Case Company.
A Current State Analysis (CSA) was conducted to analyse the current state of the existing operating model. After the CSA, relevant literature, best practices and theories were studied based on the two key development areas found in the CSA. Two key areas identified were Leadership and Management of Teams and Change Management. Based on the theory the conceptual framework was made.
An initial proposal was co-created with the Case Company and was based on the CSA findings and Conceptual Framework. Further development and validation of the operating model led to the final proposal of the improved operating model.
The outcome of this study is a more uniform operation model to implement the outsourced procurement of contingent workforce. The more uniform operating model aims to reduce the implementation time and lead to a more scalable operating model. It is therefore likely to have a positive impact on the profitability of the Case Company.
For the customer outsourced procurement decreases costs and increases internal efficiency. However, to gain these benefits the customer is required to adapt to new behaviour (major change). Therefore, adapting to new behaviour in the customer organization is critical for the implementation phase to succeed.
There was no uniform way to implement the outsourcing service, all implementations were customer-specific with a high-level of customization. With the existing operating model, it was taking too much time at the customer’s organization to adapt to new behaviour resulting in increased costs, decreased profitability and quality.
This study used the action research approach and both qualitative and quantitative data collection methods. The main data sources in this study include questionnaire, interviews, meetings, researcher’s own observations and internal documentation of Case Company.
A Current State Analysis (CSA) was conducted to analyse the current state of the existing operating model. After the CSA, relevant literature, best practices and theories were studied based on the two key development areas found in the CSA. Two key areas identified were Leadership and Management of Teams and Change Management. Based on the theory the conceptual framework was made.
An initial proposal was co-created with the Case Company and was based on the CSA findings and Conceptual Framework. Further development and validation of the operating model led to the final proposal of the improved operating model.
The outcome of this study is a more uniform operation model to implement the outsourced procurement of contingent workforce. The more uniform operating model aims to reduce the implementation time and lead to a more scalable operating model. It is therefore likely to have a positive impact on the profitability of the Case Company.