Rodríguez Ocasio, Adelis M.

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    Exploratory analysis of outsourcing services in Puerto Rico
    (2006) Rodríguez Ocasio, Adelis M.; Javier Montalvo, Dafne; College of Business Administration; Colón, Marta; Ortiz, Eulalio; Department of Business Administration; Cesaní, Viviana
    Outsourcing is a work arrangement made by an employer who engages an outside contractor to execute work that could be done by company personnel. Although the outsourcing tendency in Puerto Rico has been increasing, studies documenting this practice are absent from the literature. This work presents a comprehensive study of the current practice of outsourcing services in Puerto Rico. It focuses on the perspectives of outsourcing clients and outsourcing service providers (OSP) in three areas: human resources (HR), accounting, and information technology (IT). Some of the issues addressed in this study include countries to which services are offered; demographics such as years of establishment, number of employees and industries served; specific services provided by accounting, human resources and information technology and the reasons why they believe their clients chose them. In addition, information was gathered from sixteen clients to discover the results of outsourcing. In order to accomplish this goal, a detailed interview was conducted addressing how many OSP they had per area, for how long they had been outsourcing, reasons to outsource, disadvantages initially considered, reasons used to choose the provider, results of outsourcing and a quantitative evaluation of outsourcing per area. It was found that accounting and information technology departments are moving toward fewer providers, long lasting relationships. Main results of outsourcing are increase in expertise and available time to work in strategic activities.