Foundations of Contracts and Outsourcing
What you'll learn
- 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
- Segment the supply base for better outsourcing and supplier relationship management
- 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
- Basic undersdanding of contracts and outsourcing
- Awareness of basic rules and attributes of economic relationships
This online training course suits beginners and highly-skilled experts who must develop core competencies for contract management, outsourcing, and vendor relationships.
It provides compulsory basic knowledge of ground economic and psychological theories that set the foundations of outsourcing business and contract relations.
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 methods 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 contract management and the outsourcing process.
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 (e.g., using the FORT model) 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.
Who this course is for:
- Future and present professionals in contract management, outsourcing, and Supplier Relationship Management (SRM)
- Keen researchers who want to know more than consultancy whitepapers
- Rational and boundedly-rational economic actors
- Decision-makers and negotiators
Sergii Dovgalenko holds 20 years of executive procurement experience across the telco, aviation, and railway industry and various geographies, where he contributed to some significant global sourcing and transformation projects.
Sergii is interested in technology procurement, IT strategy and operational models, project management, and service delivery. He is the author of the book “The technology procurement handbook: a practical guide to digital buying.”
Sergii is a Fellow and a licensed tutor of the Chartered Institute of Procurement and Supply Management (CIPS.)