A contingency plan is proactive plan meant to handle an outcome that was not priory expected. It involves activities undertaken to make sure that proper and almost immediate seamless follow-up is taken in case of an emergency, risk or uncertainty. Objectively, contingency plans are meant to contain damage or any sought of injury or loss to property or personnel and also to ensure that key organizational operations run in continuity as desired even in the occurrence of emergencies and risks. Outsourcing includes an arrangement where on company provides services for another that could have been otherwise provided in-house (Dimitris, 2012).
However outsourcing may offer the organization an advantage or a risk too. Therefore, outsourcing arrangements must be done keenly. For instance, the viability and the ability of the out-sourced company to deliver and match the expectations of the outsourcing company without delay, effectively and efficiently. Secondly the outsourcing company should much look at the ability of the other company to keep the business secrets confidential. Thirdly, the outsourcing company must be keen to make sure that outsourcing is the best option to take. The outsourcing company must be able to decide whether it is better to be centralized or decentralized and make sure the outsourcing will work for the better of the company. Also, the company must be keen not to compromise quality through outsourcing and look at the cost factors of outsourcing such that the company does not incur lossy expense than keeping operations in-house. Another factor is the competency level of the out-sourced company. It should bring in more effectiveness and efficiency and spur high with competency than the in-house operations (Dimitris, 2012).
Further the company should have follow-up and evaluate the company with a closer comparison of the outsourcing and the in-house efficiency, effectiveness, competency, quality and delivery over some time. At any time, the outsourcing must be to the advantage of the company and must be so as to bring more productivity for the company. Therefore, a follow up question may include: which are the best ways to evaluate and examine the efficiency, effectiveness and competency of outsourcing (Dimitris, 2012).
Folinas Dimitris, (2015), Outsourcing Management for Supply Chain Operations and Logistics Service, IGI Global.