Research On The Improvement Of Service Outsourcing Management Of E Company Administration And Facilities Maintenance

As we all know that the three strategic models of Michale Porter have the same spirit that for one company, it should find one special resources or undisputed strenghths to idetify from other companies, that is to say, one company needs core strengths. Under the modern economic situation, the coampay’s core strenths is the life of company, the focus on the core strengh will directly infect on the company’s performance. There are many ways to improve the company’s core strength, for example:import new and advanced technology, improve the human resources and strategic investment such as acquisition or merge the companies. Among all above channels, resources integration is one method that the company usually select when do strategic planning to improve the company core strength. Resources integration includes Vertical Integration, Horizontal Integration and strategic outsourcing. Strategic outsourcing is one company outsourcing its one business or some business of its value chain to certain company which is focused on this business. One company can choose different business to do outsourcing but to be more exactly, the company will only choose that business which is not the core business to do outsourcing in order to keep the core strength. We can see nowadays, many company has outsourced its administration business and facility service. The first outsourcing company should be EDS and now outsourcing has been very important strategic goal for the company especially those international companies. Different company has different outsourcing decision model and business model and also they have different way of measuring the performance of the third-party outsourcing suppliers. In this way, if one company decides to execute the outsourcing strategy, it will meet below questions:what business will be outsourced. How to do outsourcing and how to select the suppliers and also the evaluation for the outsourcing suppliers, how to do performance measurement for the service quality? In this thesis, we will take Emerson Company outsourcing case to do the study to answer all above questions.Emerson Process Management Co., Ltd ("E" for short in the thesis) is one American international company. It’s product is meter which mainly sells to the Asia Pacific area. The company started to outsource it’s facility service, canteen, cleaning safety guard and administration service, order booking from 2008. Now it has been seven years since the very beginning. In these seven years, the service outsourcing has been a very important strategy for the company to keep its core value; however, there also emerge many problems. For example:some business shouldn’t be outsourced. That business may not the core business of the company but it has an important role related to the company’s patent or secret business. Also the outsourcing model affects the outsourcing effect. Different cooperation model leads to different outsourcing cost, the company also needs to try its best to find the most effective outsourcing model. Also we found that the performance measurement for the outsourcing party also is not very effective; there is no effective management on the service. Those entire problems will result in valueless for the outsourcing strategy. All the above questions will be the main content of this thesis and this thesis had given the detail example on the optimization. It is hoped that Emerson can has improvement through this study on the outsourcing strategy but also this study can be an contribution to today’s outsourcing strategy study and development.