Decision making in Outsourcing Security for a Multinational Company

We, Siu (2004) Decision making in Outsourcing Security for a Multinational Company. Bachelor thesis, Petra Christian University.

Abstract

Many local or multinational companies in Indonesia generally had used outsourcing service or product in order to gain competitive advantages in the market. Many researches had found that sooner or later outsourcing might play important role for the company itself. Moreover, in the future prediction, outsourcing not only becomes a short-term solution but also long-term decision inside the company. This writing will explain more for outsourcing in terms of security service, what are the background, training application, and the desirable point by outsourcing this type of business. There are three essentials point in capital budgeting that managers should take a deeper view before making decision, there are net present value. IRR and Payback Period analysis to calculate either the inveshnent in outsourcing is worth it or not. Recommendation given is developing its own security forces in order to reduce cost from hiring high trained security guards.

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