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Importance and Evaluation of Complexity-Causing and Increasing Factors as a Determining Success Indicator in Outsourcing Operations

Frank Rennung, Caius Luminosu and Draghici Anca ()
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Frank Rennung: Universitatea Politehnica Timisoara, Romania
Caius Luminosu: Universitatea Politehnica Timisoara, Romania

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Abstract: A substantial goal of complexity management consists of the avoidance of the so-called complexity trap, especially in large outsourcing operations. A recent study, in which a number of large companies participated, who had once outsourced services, confirmed that 70% of them have made significant negative experiences with outsourcing and again aspire an insourcing of services. As one of the main reasons for this ‘hidden complexity’ has been indicated, which some years previous was one determining motives for the outsourcing. The aim of this paper is to provide a model for evaluating complexity-causing and -increasing factors. Based on the most recent theories in complexity management, success determining factors are being identified and the complexity-causing and increasing factors confirmed by means of an industry survey. The result of the paper is a management model to identify complexity in business situations for example in outsourcing, in addition to the results of the expert survey on the impact of complexity are discussed and evaluated.

Keywords: complexity trap; complexity management; process management; management model for complexity (search for similar items in EconPapers)
Date: 2015
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