| Outsourcing has grown phenomenally over the last 30 years with a shift to competitive global outsourcing starting in the 1980s. Contracting out to an inappropriate source can result in a 50% worldwide failure of outsourcing initiatives within 5 years. The purpose of this single case study was to explore the elements that may contribute to service electronics outsourcing firms' personnel to perform inadequately in meeting the clients' claim-processing goals. Guided by the conceptual elements of decision making, benefits, and outsourcing costs, this study explored the elements precluding service-outsourcing firms achieving the clients' claim processing goals. Participants were a purposeful sample of 20 individuals working for an outsourcing firm in New Jersey, United States. Data collected from open-ended interviews and direct observations were coded to generate common themes. The 3 important themes that emerged include (a) ineffective vendor management in the allocation of claims, (b) work environment that entails lack of motivation and mediocre pay, and (c) insufficient training in required error codes. The proposed results could contribute to improving business by illuminating the elements associated with personnel's inadequate performance in meeting clients' goals. The implications of social benefit are to motivate outsourcing clients firms' leaders to monitor the efficiency in outsourced firms to help prevent service-outsourced projects from failing. The success of outsourcing firms could result in increasing employees' job stability and their contributions to their local economies. |
