Abstract
Outsourcing is used by most companies as one of the major strategies for cost reduction present-day. Industrial leaders attempt to acquire professional capabilities via outsourcing to promote higher quality products due to limited internal resources. Therefore, the companies can focus on their core competencies and enhance their competitive predominance. This thesis reviews concepts gathered from related professional research, which point out the characteristics of business core competencies and the main reason for outsourcing, and also include the advantages and potential challenges of outsourcing. These key factors will be beneficial to outsourcing execution. This study proposes an outsourcing procedure, which includes outsourcing decision making, risk evaluation, model selection, supplier selection, contract, business transfer, manpower arrangement, outsourcing management, and skills assessment. All of these categories contain their own special key points that are crucial to the outsourcing procedure. Businesses can apply these concepts and methodologies to reduce the risk of failure and increase the success rate. Outsourcing administrators must process and handle every step properly to ensure that businesses, employees, and outsourcing providers all benefit from this process, in order to create a successful outsourcing project. A real case of outsourcing semiconductor wafer manufacure equipment PM (preventive maintenance) is used to demostrate the proposed procedure. In order to improve manpower utilization and reduce labor cost, the company successfully outsourced the non-core business activity “equipment PM”, which adopted the “business outsourcing”, “labor outsourcing” and “human dispatch” model in phases. The research result can be used as a reference guide for companies to manage their outsourcing projects. Finally, this study suggests the possible future research directions for related fields in outsourcing.