Perez, Marnelli P.

BM701a
Facilities Management

ACTIVITY

DELL

Answer the following questions:

1. Before deciding on a massive outsourcing initiative, what are the consideration/s defining the
baseline for service delivery should have been carefully examined by Dell?

The following are the considerations defining the baseline for service delivery that Dell
should have been carefully examined:
 Business objectives
 Drivers and constraints
 Risks and opportunities
 Stakeholders as end-users
 Scope of services
 Sourcing policy
 Offshoring
 Statutory requirements

2. How can Dell minimize the risks brought by outsourcing based on the attributes of service
provision?

The attributes of service provision are the criteria by which the various options for
service delivery should be evaluated. Criteria based on attributes of service provision that
matter most to the organization and end-users help to focus on the option or arrangement most
likely to offer the best value solution that satisfies needs. The following are the attributes of
service provision, which organization can consider:
 End-users service- the organization needs to establish the scope and standard of
the services it requires.
 Priority- the organization must clearly express the primary services which need
to be delivered.
 Costs- the organization must ascertain that direct expenses attributed to its
services.
 Control- the organization must determine the extent of supervision desired or
required for each service it delivers.
3. What are the options for service delivery should Dell inject to the company strategy in order
to eliminate outsourcing risks?

The organization should consider which option, or combination of options, for service
delivery most closely matches its identified needs. The following are the options for service
delivery:
 Business unit- it involves the reconstitution of the in-house team into an
independent company, to expand its business by gaining contracts from other
organization.
 Managing agent- it involves the appointment of a specialist to act as the
organization’s primary professional advisor on facility management.
 Managing contractor- it involves the appointment of a single entity to manage
individual service providers.
 Managing budget- it involves the appointment of a contractor who takes
responsibility for the payment of all suppliers and provides a consolidated
invoice at the end of each month.
 Total facility management- it involves a single organization in charge of
providing services and general management of the facility.
 Agency- it involves contracted employment of personnel through a manpower
agaency.