Operations Decision for Continuing Outsourcing
Operational Decision for CVS Caremark to Continue Outsourcing with Affiliated Computer Systems
Chris Walston
ECO-550, Economics for Management
Sonya R. Byrd
July 26, 2012
Abstract
The primary goal of this report is to take an in depth look at daily operations, involving Affiliated Computer Systems. To determine if current production levels, staffing, wages and quality controls are valid as a rationale to continue the contract. (ACS) is a third party company that provides outsourcing or contracting of an existing business process for CVS Caremark. CVS Caremark is the organization previously performing the task of customer service internally. CVS Caremark outsourced the process of the customer service representative to ACS.
Methodology
Data for this report was collected via a confidential survey by Taleo Resources. Due to the perceived sensitivity of this topic area, and to encourage a high level of participation, the survey was completed anonymously. A random sample of 20 middle and lower level managers was selected from ACS and CVS Caremark utilizing the current company directory. The managers were selected from multiple departments, including human resources, Right Source, Humana, Sprint and IT. The questionnaire was developed specifically for this report. A total of 100 employees responded to the questionnaire and the final response rate was 45 percent. This was well above the target response rate of 30 percent. Very basic demographic information, such as employee level, tenure and department were collected to gauge how representative the respondents were of the sampled population. The demographic profile of respondents was comparable to the population sampled. A total of 88 respondents (85 percent) completed the survey in English, 25 (10 percent) in Spanish. Directors accounted for 4 percent of respondents, 15 percent were team leads and the remaining 10 percent were Acting Supervisors. We will utilize the basics of economics in determining the
Chris Walston
ECO-550, Economics for Management
Sonya R. Byrd
July 26, 2012
Abstract
The primary goal of this report is to take an in depth look at daily operations, involving Affiliated Computer Systems. To determine if current production levels, staffing, wages and quality controls are valid as a rationale to continue the contract. (ACS) is a third party company that provides outsourcing or contracting of an existing business process for CVS Caremark. CVS Caremark is the organization previously performing the task of customer service internally. CVS Caremark outsourced the process of the customer service representative to ACS.
Methodology
Data for this report was collected via a confidential survey by Taleo Resources. Due to the perceived sensitivity of this topic area, and to encourage a high level of participation, the survey was completed anonymously. A random sample of 20 middle and lower level managers was selected from ACS and CVS Caremark utilizing the current company directory. The managers were selected from multiple departments, including human resources, Right Source, Humana, Sprint and IT. The questionnaire was developed specifically for this report. A total of 100 employees responded to the questionnaire and the final response rate was 45 percent. This was well above the target response rate of 30 percent. Very basic demographic information, such as employee level, tenure and department were collected to gauge how representative the respondents were of the sampled population. The demographic profile of respondents was comparable to the population sampled. A total of 88 respondents (85 percent) completed the survey in English, 25 (10 percent) in Spanish. Directors accounted for 4 percent of respondents, 15 percent were team leads and the remaining 10 percent were Acting Supervisors. We will utilize the basics of economics in determining the
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