Foundations of Contracts and Outsourcing

Foundations of Contracts and Outsourcing

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.

Contract Management, Outsourcing, and Supplier Relationships - from Classical Theories to Strategic Models and Tools.

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What you will 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.

Rating: 4.5

Level: Beginner Level

Duration: 1 hour

Instructor: Sergii Dovgalenko FCIPS