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Developing a Sourcing Strategy


Based on an organisation with which you are familiar, develop a sourcing strategy for a particular service or bundle of services. The sourcing strategy considered should be different from their existing one (i.e. if it is an in-house operation, propose outsourcing; if it is an outsourced operation, propose an in-house or alternative type of outsourcing relationship). Develop a suitable outline Service Level Agreement for the service under consideration. You should then produce a report to be presented to the Board of Directors that covers the following:

  1. Examination of the client’s current situation (baseline position). This should cover existing service delivery levels if any; affected stakeholders; value for money; the existing service plan; monitoring procedures; customer review processes and any other information you consider relevant. (20 marks)

  2. Examination of the opportunities that might exist (target position). Issues such as synergy between services (overlaps); market testing; value for money; opportunities for integration. (25 marks)

  3. Identify a possible sourcing strategy. This should include a rationale of ‘fit’ between service characteristics and service relationships. The desired level of substitution level, strategic impact and thus partnering relationship should be considered. In the case of an in-house sourcing strategy, similar considerations should also be made regarding the nature of the service relationship. The proposed sourcing strategy should be verified through whole life evaluation. (35 marks)

  4. Develop a suitable outline Service Level Agreement for the service under consideration. This should be tailored to the specific requirements of the service identified. (20 marks)  
  1. The work should be based as far as possible on a real organisation and a real service or group of services.  

  2. The report should be based on real-life evidence and insights rather than information reproduced from the course notes

  3. The service(s) considered should only be facilities management service(s) and should not include other services such as information technology services.

  4. The organisation you consider does not have to be your own organisation. It can be any organisation that you have sufficient information on. In some cases it may be necessary to produce ‘guesstimates’ in the absence of firm information.

  5. The organisation under consideration may include an organisation responsible for managing a historic building as a tourist or visitor attraction.

  6. Try to consider the commercial perspective and the opportunities arising from improved services. For example, if you were considering the operation of a historic building, consider the affected stakeholders and the service levels that would be required.  

  7. In the absence of hard data (e.g. for commercial confidentiality reasons), informed guesstimates or assumptions may be acceptable, although such assumptions should be identified.

  8. It would be appropriate to submit a document of around 5,000 – 6,000 words, with supporting information in appendices (if the student deems this necessary and the appendices are required to support to the arguments made). The total length of the submission should not exceed 10,000 words.

  9. The work must be fully referenced throughout to show how the inclusion of published work has influenced your discussions. All citations and references should use Harvard style.

Students will be given the opportunity to upload a draft version of their report to Turnitin; this will provide students with an ‘originality report’ on their work. This report indicates the percentage of work which has been included from published material; therefore students must ensure their work is fully referenced. There is no right or wrong percentage for students to aim for, this is not the purpose of Turnitin, what the software provides is a clear indication of the amount of published data included. The student should considered if this published data is appropriate to include, does it support the argument, point or debate they are writing about, are two sources of data being compared to allow the students to come to their own opinion on a topic? A balance between published work and the student’s interpretation of published work is key to providing a piece of work at the correct academic level with sufficient rigour for postgraduate study.

On receiving the originality report the student should reflect on their work and make changes if the above has not been achieve. When the student has made any necessary changes the final documents is to be submitted to the final folder on VISION, on this submission the student will not be provided with an ‘originality report’ so they must be happy with their final submission as this is their opportunity to submit the final piece of work which will be marked.

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