The Role of Outsourcing in Service Management and Business

Process: Optimization Drives Competitive Advantages

Muharman Lubis

, Rahmat Fauzi

, Asti Amalia Nur Fajrillah

and Arif Ridho Lubis

Telkom University, Jalan Telekomunikasi No. 1, Bandung, Indonesia

Politeknik Negeri Medan, Jalan Almamater No. 1, Medan, Indonesia

arifridho@polmed.ac.id

Keywords: Outsourcing, Service Management, Business Process, Optimization, Competitive Advantages.

Abstract: Today, IT services are obtained with a combination of multiple type of work activities, primarily through

sub-contract or known for as outsourcing policy. Structured activities are mainly based on standard

processes, procedures and tools while unstructured mostly related to obtain new experience or knowledge in

the different field through supervision. In support and delivery IT service, increasingly popular

standardization efforts to be implemented into the business process which advocate for diverse kind of

management such as capability, capacity, availability, service-level and financial in order to attain best level

of IT product and quality result. As IT departments or division plan to bridge the digital divide that become

the current trend, it is important that the automation can empower the process to become more efficient,

there should be the trade-off to gain some improved activities if not have intention to hold the advantages as

a adaptive, trigger and catalyst due to the interdependency. Thus, this study wants to develop an application

in regard to deliver outsourcing service in various classification or type by understanding the current issue

in the outsourcing in relation to pros and cons to balance the demand from the corporation (client) and

preferences from the worker (provider).

1 INTRODUCTION

The availability of access to technology is very

useful for the people in terms of information

provided on the Internet for various purposes, with

just a few easy steps, anywhere, anytime, any device

and anyone. With these kind of interaction, various

users without consider the different nation can find

their desired information such as about freelancer,

internship, trainee or contracts. In the rapidly

growing digital age, many talents in graphic

designers, web developers, animators, audio editors,

language translators and design experts want to find

quick cash or additional revenue, which certain

corporations demand them for strategic reason.

Unfortunately, there are various issues that hinder

the attempts to connect those needs such as limited

resources, unknown marketplace and unproven

skills. Traditionally, certain service management and

business process have been organized by geographic

and business unit under branch coverage. Therefore,

the advancement in telephony technology present

new opportunities to streamlining call handling and

routing process to other provider corporation.

Importantly, the corporation ask the credibility and

commitment from service provider to work under

pressure to achieve the objective of certain project

while organization can focus to the primary

function.

Recently, information centre queues sends calls

virtually to the suitable agent, regardless of the

location or place, which allows calls to be managed

based on several requirements namely customer

needs and values, transaction type or the particular

user segment. This can help to improve the

profitability as well deliver more benefits towards

the callers, since they will communicate with the

best-qualified and high-competent agent for their

particular problem. This mechanism for operator to

handle complains is well known in the world, but the

service management should be beyond that, allow

other type of activity to be outsource effectively to

increase the chance for many skill person find

project or job easily and quickly. Therefore,

multinational companies are also interested to

improve the adoption of a cross-functional

488

Lubis, M., Fauzi, R., Nur Fajrillah, A. and Lubis, A.

The Role of Outsourcing in Service Management and Business Process: Optimization Drives Competitive Advantages.

DOI: 10.5220/0008889504880495

In Proceedings of the 7th International Conference on Multidisciplinary Research (ICMR 2018) - , pages 488-495

ISBN: 978-989-758-437-4

mechanism into the organizational structure in term

of service management and business process. In

addition to service delivery function based on

geography, various companies are developing what

so called global “Centres of Excellence” for various

type of program such as self-service account,

customer data enhancing service, workforce

planning system, talent forecasting, process

improvement, dispatch queues and advanced call

routing to increase the efficiency in coordination and

communication. Furthermore, IT departments are

pressed to do more with less resources, which

require creative approaches in term of manage the

human, application and budget resources. Therefore,

the technology can solve this problem within and

between operations such as with the service desk

and application development, which are slowly

designed for modularity, cohesiveness and

automation. Actually, there are many theories that

discuss the outsourcing strategy such as transaction

cost economics (TCE), core competencies theory

(CCT), relational theory (RT), resource-based theory

(RBT), evolutionary economic theory (EET),

knowledge-based view (KBV), agency theory (AT),

neoclassical economic theory (NET), social

exchange theory (SET) and economy of information

theory (EIT) (Vaxevanou and Konstantopoulos,

2015)

2 LITERATURE REVIEW

2.1 Motivations for Outsourcing

The concept of outsourcing is derived from the

“outside resourcing”, which means obtaining

resources from abroad, where independent

professionals, freelancer, practicum, internship,

trainee and contract go into it. The term is then used

in the economic terminology to indicate the use of

external sources to develop a business, which

normally uses its internal resources (Troaca and

Bodislav, 2012). Currently, IT and business

alignment become global trend, which several

companies such as IBM, HP and Dell has been

gaining their attention to implement into their

service management such as virtual office, electronic

transaction, off-shoring, private cloud utilization,

clone product, high tech consumption, etc. It can be

seen as the opportunities for knowledge sharing and

acquisition in the technical solutions as the service

to other companies. Actually, several companies

determine their approaches holistically by the

elimination of the complexity of the structure and

architecture and through integration and automation

of IT process as well business innovation support

that concern to the customer satisfaction. For

decades, some experts have encouraged the need for

companies to pay attention to their competence by

delegating supportive role, which cover from non-

essential function to competitive differential then to

competent service providers (Gibler and Black,

2004). According The Economist, the outsourcing is

an old phenomenon that has made its presence felt

since the time of the Second World War, knowing

the tremendous trend especially after 1990.

According to some estimates, in 1946 only 20% of

the value added of US goods and services from

external sources, 50 years later, the proportion has

tripled, reaching 60%. Furthermore, Rob Aalders,

mentioned in “The IT Outsourcing Guide”, which

supports the fact that outsourcing is not a new

phenomenon, that even now 50 year company have

outsourced advertising, legal services, maintenance

and production (Troaca and Bodislav, 2012).

Of course, the company should be looking for

the one that deliver cost effective quality services, in

which certain obstacles should be considered such as

gaps in corporate culture or objective lead to

inconsistent action with the firm’s policies and

procedure. At some point, the decision to use

outsourcing is not merely to reduce operating costs,

but in response to tremendous demand to

downsizing number of employees to face tougher

competition and to demonstrate value (Matthews,

2017). In addition, there are three level of

outsourcing, which are tactical that is used to

determine and solve specific problems, then

transformational as a long-term relationship to assist

business changes and manufacturing that refer to

determine various activities to be offered to outside

(Krstic and Kharovic, 2015). Investment in IT can

cause the unbalance financial, so that some

organizations become very careful to make

decisions, become the follower rather than as the

pioneer. Literally, outsourcing shows the use of

external resources when the execution of task,

function and processes are carried out internally

entrusted to an external providers in the specializing

area based on long-term cooperation (Koszewska,

2004). Meanwhile, the optimization of service

delivery through outsourcing is not merely about

reducing the cost in operational level but also create

the flexible and reliable infrastructure to deliver

competent business value based on IT investment to

have high return on investment (ROI) in the next

period. Thus, the concept of linking the differences

between IT capability and business value, which

The Role of Outsourcing in Service Management and Business Process: Optimization Drives Competitive Advantages

489

some organizations poor to realize the benefit of

particular IT investment, flexible resources and

usage integration lead to many IT project got failed

(Lientz and Larseen, 2004).

There are five elements of outsourcing

characteristics, which are close link between process

and critical factor, the transfer of ownership of

internalized business function, a global contract, a

long-term commitment and obligation of service

level (Quelin and Duhamel, 2003). Specifically, the

demand for increased productivity, higher

profitability and quick growth have led the

organizations to validate their internal human

resource in term of service management and

business processes, resulting in a shift of strategic

services to outsourcing and move away from

discrete services (Seth and Sethi, 2011). It is

expected to the increases of the quality of services,

even though there is no quantitative data to support

the real decision that outsourcing is always cheaper

and better. Meanwhile, the lack of potential

innovation and knowledge of other processes, where

the possible alternatives to business processes are

design thinking approaches become the choice to

guarantee better results, cost savings and help

differentiate between suppliers. Of course, the

objective of the organization to create opportunistic

results by focusing on customer satisfaction that

require logic, systematic reasoning and intuition to

explore every possibilities (Matthews, 2017).

Therefore it is important to harmonize the legislation

both in terms of freedom and privacy to avoid

misunderstanding in managing the service delivery

process related to individual and public interest

(Lubis, et.al, 2018). On the other hand, there are

various strategic factor to be considered before

implement outsourcing such as core competence and

critical knowledge, flexibility, lack of resources and

the implication of the quality service (Kremic, et.al,

2006).

2.2 Expected Benefits of Outsourcing

To encourage the human perception to achieve the

objectives and expectations in order to have a good

quality of state security that has the principle of

transferability and readability, where a series of

strategies must be developed and suitable

environment should be prepared (Ahlan, et.al, 2015).

The law establishes the obligation of the individual's

conscience that fall within the cultural field in which

the values are received. It supposes the freedom of

the individual as a cause that acts without external

coercion through the process of socialization,

although the importance of the principle tends to be

overlooked (Lubis, et.al, 2017). The strategies

adopted by majority large companies has reduced

their cost production to around 20%, which

encourages them to highlight the globalization with

outsourcing practices (Troaca and Bodislav, 2013).

However, the outsourcing process has relative

challenge in regard to service provider, which is not

financially compensated for being proactive. As a

result, they have tendency to be logically ‘pushed

back’ in a dependent role and cannot accelerate the

innovation process. The second concern is related to

the information research and best practice, which

mostly outsourcing contractor are working on

operational projects and tasks that has purpose to

support core business, so do not provide a basis for

innovation. Last concern, the outsourcer assesses

personal trust at a much lower level than service

provider, which verified the kind of relationship is

not in the partnership stage yet (Silvius, 2013).

A study reported general outsourcing practice

from 1021 firms interviewed, there is 61.7%

purchased training services from external service

provider; 54.3% using external legal advice; 49.8%

purchase services in temporary agency work; 33.6%

requested consulting services and 31.8% used

external service to provide assistance to find

manager (Braun, et.al, 2011). Another study

emphasized that 71.8% of Hungarian organization

outsource payroll, in which certain organizations

outsource several HR activities at around 58%

(Molnar, 2010). On the other hand, India continues

to be the leader in IT outsourcing, although its

infrastructure index is lowest (3.7) compare to China

and Mexico with 4.5 and 4.0 respectively as other

global alternatives. Therefore, for the corporate

taxes India also the highest (34%) compare to China

(25%) and Mexico (30%) (Stettler, et al, 2014). On

the other hand, China and Mexico offer cost

advantages compare to India, but they do not have

strong English proficiency and wide range of IT skill

in general. Nearly all offshore-outsourcing project

will involve a transition phase in which the provider

should develop expertise within client’s systems in

order to maintain the services from the offshore

location (Kotlarsky, et. al, 2014). Many

manufactures outsource 70% - 80% of the content of

their finished product (Corbett, 2004). Interestingly,

statistical analysis suggested that the inclusion of

outsourcing was negatively related to the satisfaction

changes for opportunities and participation at work,

to achieve something valuable and advancing skill in

the organization. Furthermore, participation in the

outsourcing program was negatively related to

ICMR 2018 - International Conference on Multidisciplinary Research

490

communication changes throughout the organization

as well as work capacity, challenge and personal

work responsibility (Elmuti, et. al, 2010; Ahlan,

et.al, 2011).

Outsourcing can allow an organization to obtain

more control towards business function through an

agreement or contract while an administrator can

connect reward and compensation based on the

result of the task completed directly (Phipps and

Merisotis, 2005). Some economists have expressed

concern that outsourcing is less likely than other

forms of international trade to gain general

prosperity and more likely to harm the workforce

based on size of company and the service ranges

(Bhagwati, et. al, 2004). Other benefits can be

obtained with the ability to focus on core

competencies, faster and higher-quality service and

improved efficiency, access to new skills and

technology, greater flexibility, staff relocation, lower

long-term capital investments, improved

predictability of costs, assistance with organizational

changes and globalization (Doyle and Tapper, 2001;

Smith, 2012; Stettler, et. al, 2014). In addition, the

study found that companies tend to repeat

transaction based on previous experience with

company work upon, which main problem in the

global online market is related to the effective

communication limited to the language barriers,

time-zone differences, lack of familiarity and

cultural differences (Hong and Pavlou, 2013).

3 RESEARCH METHOD

Researcher use observation to examine the pros and

cons in outsourcing market in regard to deliver the

service management and how to optimize the

platform. To achieve comprehensive process of

observation based on strict criteria, researcher

investigate various cases involving issues of

outsourcing process by adjusting the assumption and

requirement based on literature review (Leedy and

Ormrod, 2010). Theories and concept has been

driven by the result in the data collection process

that represent the classification and categorization

process of variable or construct through systematic

activities in explaining the phenomenon based on

particular setting. Thus, the researcher request group

of student to develop the application for outsourcing

market using classic lifecycle due to limited

resources, budget and time by using spiral model. It

has emphasized more on risk analysis comprises of

planning, risk analysis, engineering and evaluation.

To analyse the requirement, team member use

Unified Model Language (UML), involving Use

Case diagram, Class diagram, Activity diagram,

Sequence diagram and Entity Relationship diagram

to represent the relationship between entity and

features. In the development phase, it used PHP to

allow integration service with HTML for web

application and MySQL for the database

management system (DBMS). To improve the

outsourcing process, certain activities should be

done in the system such as recruiting process

outsourcing (RPO), training and development,

compensation and salary surveys, organizational

design and development, IT risk management and

payroll (Cicek and Ozer, 2011).

4 PROTOTYPE DEVELOPMENT

IT evolution from technology-driven to business-

opportunities consider the various factors, which are

compliance, complexity, speed of change and cost.

Therefore, to optimize the service delivery, the

corporation should identify the constraints and

limitation of their operational and management

model to provide efficiency in term of time and

budget. Competition in the global market is really

brutal because a firm must capture a positive

threshold of demand or else it is not profitable. On

the other hand, the attempt to increase price

competition such as a price cut increases demand,

which lowers the average cost per unit of demand

(Cachon and Harker, 2002). Before the evolution

took the biggest step, the environmental

identification is necessary to match with the type of

applications, data, network and process to be

developed. For example, corporate business

strategies need to integrate data store from

decentralized into centralize data warehouse to

remain competitive. On the other hand, different

organization culture might influence the process of

decision-making in regard to priorities, assets and

infrastructure. The decision-making of outsourcing

involves various assessment such as related to the

suitability and scalability of particular technology to

the operational activities, considering how rapid the

changes somehow leave behind the other old tech to

prevent waste in the investment (Doyle and Tapper,

2001). These examples encourages the researcher to

develop open market which buyers and sellers can

specify their preferences and criteria with lower

expectancy and small risk. The outsourcing should

evolved as the best practice to optimize service

delivery with several golden of rules:

The Role of Outsourcing in Service Management and Business Process: Optimization Drives Competitive Advantages

491

1) Enable the business capacity and capability to

be comprehensively help the complete phase of

service delivery from design to the

optimization.

2) Distinct the service value based on its offer, the

agreement and the form used to avoid go

beyond what customers expect from the

organization.

3) Develop a clear understanding of alternative as

the result of uncertainty as the possibility of

changes within organization.

4) Gather those interested in technology,

management, business and administration to

come into common agreement of understanding

to define future objectives.

5) Determine the list of necessary priorities and

sequences in creating the opportunities to align

with the vision and mission from organization.

6) Create the satisfied of payment terms by

simplify the single-contract to improve the

flexibility with reward and punishment

mechanism.

7) Identify, articulate and obtain support from

executive management.

8) Provide comprehensive solutions backed by a

global knowledge network through

standardization for supporting business plan.

9) Reduce complexity to increase added value to

achieve service levels.

10) Encourage the program on the customer

satisfaction and internal efficiencies of

operation.

The process of developing the web and mobile

application take granted those golden rules

especially, in the process of requirement analysis.

After designing the prototype, the evaluation take

place involving several testers to check the

performances and to find the vulnerabilities of the

system based on business model involving targeting,

marketing and positioning. To help the client to find

the capable workers to assist and support the process

of project or tasks completion, the application

maintain the list of expertise, range of salary and

previous experience based on category that is

selected. The general concept of this application is to

encourage quick searching process based on

outsourcing popularity, certainty and capability for

the freelancer, contractor, practicum, internship and

other type of roles. It is expected the searching

process will be conducted easily and save time

efficiently by promoting sticky, tagging and

bookmark feature to keep historical data and

alternative for further use. The list of job promotion

can be seen by people who need services in a

particular field by alphabetic order based on set of

expertise of specific order such as time posting or

previous task. By just waiting the user request, the

opportunities will be missed so the service delivery

in this application need be proactive to enhance the

function with specific constraint as the baseline:

1) Deliver superior support to the complaint from

customers with the principle of service

excellence through chat menu in order to allow

communication directly between corporate,

outsourcer and management by selecting

specific room for discussion purposes.

2) Enable acceleration of innovation through

personalization and customization process

based on context awareness to enhance

learnability.

3) Allow quick service creation and maximum

performance as the work standard by allowing

user to add category to their profile or memo

independently.

Provide greater visibility across the application

through familiar icon, label and smooth colour

to deliver operational efficiency in meeting the

objective of accessing the application.

Figure 1: Home User Interface.

ICMR 2018 - International Conference on Multidisciplinary Research

492

Figure 2: Search User Interface.

Figure 3: Dahsboard Client.

User perspective and objectives are critical to

define the scope and evaluating the risk before

selecting the group project and consultant, where

organization should notify employees about

outsourcing initiatives and conduct analysis to gain

technical support, facilitating thorough discussion

and drawing out consensus to drafting report or

making presentation (Bajec and Jakomin, 2010).

Interestingly, a study indicated that the primary

strategic driver for offshoring is the need to reduce

the costs (93%), followed by competitive pressure

(69%), the need for improved service levels (56%)

and the need for accessing qualified personnel

(55%). On the other hand, poor service quality was

cited by 61% of the respondents as the most

important risk, followed by lack of cultural fit (54%)

and loos of control (51%) (Oshri, et. al., 2009). The

size of the country also can affect the thickness of its

market, while the technology for search affects the

cost and likelihood of finding a suitable partner, in

which the technology for specializing components

determines the intention of a partner to undertake the

required venture in a prototype (Grossman and

Helpman, 2005).

In fact, the answer to successful strategy for

outsourcing is extensively complex as it implies the

optimization of the level disaggregation and

geographical as well as organizational dispersion

(Contractor, et. al., 2010). Operational risk and

management are considered as dominant factors in

the decision to outsource specific function such as

accounting, which depends on the issues of the loss

of confidential data, owner responsibilities, changes

in suppliers and supplier failure to deliver as

expected (Dorasamy, et. al., 2010). After all, success

in outsourcing business depends on various

elements, some of which are visible to customers

such as quality of service and products or after sales

services but what makes the differences is structure

where the company is organized (Bacea and Borza,

2015). To maintain the enforcement, it is encourage

to create periodical auditory, proper compliance and

privacy impact assessment towards the

implementation of the policy (Rosmaini, et. al.,

2017).We hope you find the information in this

template useful in the preparation of your

submission.

5 CONCLUSION

Currently, no one disputes the importance of IT

resources as the fundamental pillar for electronic or

mobile commerce, which can decrease the operating

cost and increase profit significantly, although some

of companies have not done so well in utilizing IT

resources. In addition, many stories about adoption

of IT capabilities have been triggered by

collaboration with other corporation with high

investment and dependencies, structure complexity,

changes of trends and dynamic environment.

Arguably, it has affected the direction of strategy

with IT and business alignment concept to be set

foothold in the condition of high competition in the

marketplace. The existing literature has shown that

firms are moving towards outsourcing, though with

different calculation. This study has made a

theoretical contribution by extending previous

research conducted with emphasizing the

motivation, expected benefits of outsourcing and

The Role of Outsourcing in Service Management and Business Process: Optimization Drives Competitive Advantages

493

advancing the understanding of the association

between influencing factors and the application

development through self-regulated market rather

than government-regulated.

ACKNOWLEDGEMENTS

It is very great to pleasure many thanks to our

beloved students in the subject of enterprise

architecture integration of Telkom University, which

has been spent their valuable time develop the

application, namely Gagah Merundanda, Ilham

Ramadiargo, Farah Azhaar N, Anggita Hanan P, and

Khoirun Nisa

REFERENCES

Ahlan, A.R., Lubis, M., 2011. Information security

awareness in university: maintaining learability,

performance and adaptability through roles of

responsibility. Int. Conf. Information Assurance and

Security, 246-250.

Ahlan, A.R., Lubis, M. & Lubis, A.R., 2015. Information

security awareness at the knowledge-based institution:

its antecedents and measures. Procedia Computer

Science, 72, 361-373.

Bacea, A.C. & Borza, A., 2015. Outsourcing: why and

why not? Proceedings of International Management

Conferenfe, November.

Bajec, P. & Jakomin, I., 2010. A make-or-buy decision

process for outsourcing. Distribution Logistics Review,

Promet – Traffic&Transportation, 22(4): 285-291.

Bhagwati, J., Panagariya, A., Srinivasa, T.N., 2004. The

muddles over outsourcing. Journal of Economic

Perspectives, 18(4): 93-114.

Braun, I., Pull, K., Alewell, D., Stormer, S., Thommes, K.

2011. HR outsourcing and service quality: theoretical

framework and empirical evidence. Personnel Review,

40(3): 364-382.

Cachon, G.P., Harker, P.T., 2002. Competition and

outsourcing with scale economies. Management

Science, 48(10): 1314-1333.

Cicek, I., Ozer, B., 2011. The effect of outsourcing human

resource on organizational performance: the role of

organizational culture. Int. Journal of Business and

Management Studies, 3(2), 131-144.

Contractor, F.J., Kumar, V., Kundu, S.K., Pedersen, T.,

2010. Reconceptualizing the firm in a world of

outsourcing and offshoring: the organizational and

geographical relocation of high-value Company

functions. Journal of Management Studies 47(8):

1417-1433.

Corbett, M.F., 2004. Why it makes sense and how to do it

right. The outsourcing revolution. Dearnorn.

Dorasamy, M., Marimuthu, M., Jayabalan, J., Raman, M.,

Kaliannan, M., 2010. Critical factors in outsourcing of

accounting functions in Malaysian small medium-

sized entreprises. Kajian Malaysia, 28(2): 39-69.

Doyle, C., Tapper, D., 2001. Evaluating the benefits of IT

outsourcing. IDC White Paper.

Elmuti, D., Grunewald, J., Abebe, D., 2010. Consequences

of outsourcing strategies on employee quality of work

life, attitudes and performance. Journal of Business

Strategies, 27(2): 177-203.

Gibler, KM., Black, R.T., 2004. Agency risks in

outsourcing corporate real estate functions. JRER

26(2): 137-160.

Grossman, G.M., Helpman, E., 2004. Outsourcing in a

global economy. Review of Economic Studies, 72:

135-159.

Hong, K.Y., Pavlou, P.A., 2013. Online labor markets: an

informal “freelancer economy”. The IBIT Report,

February, Temple University.

Koszewska, M., 2004. Outsourcing as a modern

management strategy, prospects for its development in

the protective clothing market. AUTEX Research

Journal, 4(4), 228-231.

Kotlarsky, J., Scarbrough, H., Oshri, I., 2014.

Coordinating expertise across knowledge boundaries

in offshore-outsourcing projects: the role of

codification. MIS Quarterly 38(2): 607-627.

Kremic, T., Tukel, O.I., Rom, W.O., 2006. Outsourcing

decision support: a survey of benefits, risks and

decision factors. Supply Chain Management: An

International Journal, 11/6: 467-482.

Krstic, B., Kharovic, E., 2015. Business process

outsourcing as a tool for improving enterprise

efficiency. Ekonomika, 61: 31-41.

Leedy, P.D., Ormrod, L.E., 2010. Practical Research:

Planning and Design (8

edition). Upper Saddle River,

NJ, USA: Pearson Education.

Lientz, B.P., Larseen, L., 2004. Manage IT as a business:

how to achieve alignment and add value to the

company. Elsevier Butterworth-Heinemann.

Lubis, M., Kartiwi, M., Zulhuda, S., 2017. Privacy and

Personal Data Protection in Electronic Voting: Factors

and Measures. Telkomnika 15(1): 512-521.

Lubis, M., Kusumasari, T.F., Hakim, L., 2018. The

Indonesia Public Information Disclosure Act (UU-

KIP): Its Challenges and Responses. IJECE 8(1): 94-

103.

Matthews, L.L., 2017. Outsourcing – measuring status

quo. Insights, 30(2): 92-100.

Molnar, D., Vojtek, E., Borda, V., Szendro, K., Juhasz, G.,

2010. Evaluation research on outsourcing human

resource activities. Kaposvar Human Exchange,

Human Resource Development and Consultant

Foundation, 1(2), 91-110.

Oshri, I., Kotlarsky, J., Willcocks, L.P., 2009. The

handbook of global outsourcing and offshoring. 3

Edition. Palgrave Macmillan.

Phipps, R., Merisotis, J., 2005. Is outsourcing part of the

solution to the higher education cost dilemma?

Institute for higher education policy, September.

ICMR 2018 - International Conference on Multidisciplinary Research

494

Rosmaini, E., Kusumasari, T.F., Lubis, M., Lubis, A.R.

(2018). Insights to develop privacy policy for

organization in Indonesia. Journal of Physics: Conf.

Series 978(1).

Rosmaini, E., Kusumasari, T.F., Lubis, M., Lubis, A.R.

(2018). Study to the current protection of personal data

in the educational sector in Indonesia. Journal of

Physics: Conf. Series 978(1).

Seth, M., Sethi, D. (2011). human resource outsourcing:

analysis based on literature review. Int. Journal of

Innovation, Management and Technology, 2(2) 127-

135.

Silvius, A.J.G., Turkiewicz, J., Keratsinov, A., Spoor, H.

(2013). The relationship between IT outsourcing and

business-IT alignment: an explorative study. ComSIS,

10(3): 973-998.

Smith, A. (2012). The pros and cons of outsourcing.

UNLV Theses, Dissertations, Professional Papers and

Capstones. 1478.

Stettler, E., Ali, I., Jalswal, A., Mohal, M. (2014). The

rising stars of IT outsourcing. ATKearney.

Troaca, V.A., Bodislav, D.A. (2012). Outsourcing: the

concept. Theoretical and Applied Economics, XIX, no.

6(571): 51-58.

Quelin, B., Duhamel, F. (2003). Bringing together

strategic outsourcing and corporate strategy:

outsourcing motives and risks. European Management

Journal 21(5).

Vaxevanou, A., Konstantopoulos, N. (2015). Models

referring to outsourcing theory. Procedia – Social and

Behavioral Sciences 175: 572-578.

The Role of Outsourcing in Service Management and Business Process: Optimization Drives Competitive Advantages

495