Establish foundational knowledge of contracts and outsourcing by relying on classical economic theories
Explain the Rational Choice Theory and Bounded Rationality and how they affert our decision-making
Introduce Transactional Cost Economics and Incomplete Contracts and suggest practical ways to overcome the Hold-up Problem and make outsourcing decisions.
Explain the spectrum of outourcing and contractual relationships, types of contracts, and evolution of relational contracting
Show how formal and relational contracts coexist and add value to each other
Discuss parties’ expectations under outsourcing contracts
Set the basis for further professional development in contract management, outsourcing, and Supplier Relationship Management (SRM)
Provide the visual and practical view of outsourcing strategy
This course equally suits newcomers to the profession and highly-skilled experts who need to develop core competencies in contract management, outsourcing, and vendor relationships.
It’s not yet about drafting, authoring, or negotiating contracts.
It provides compulsory basic knowledge of ground economic and psychological theories that explain how buyers and sellers manage relationships to achieve economies of scale and streamline business processes.
Our course explains the benefits of outsourcing as a blend of decision-making, heuristics, incomplete contracts, relationships, and trust. We will wear our BPO vendor’s shoes to understand their business objectives and risk-mitigation techniques incorporated into different types of contracts.
We will leverage Behavioral Economics – an elegant synthesis of psychological, cognitive, emotional, and cultural aspects that explain the human side of service delivery. It applies to procurement, vendor management, and outsourcing business.
With the help of Rational Choice Theory, Bounded Rationality, Transactional Cost Theory, Agency Theory, and Incomplete Contracts, this course will tell you a story of business needs, relational norms, and mutual dependence in the modern world of opportunism and irrationality.
We will teach ways to apply conscious outsourcing decisions and develop trust-based relations with our contractors.
We will promote back-office functions as creators of business value and relationship capital.
We will synthesize all course materials into a multi-dimensional outsourcing strategy for our students to test and apply in practice.
