CRITERIA FOR OUTSOURCING BY THE UNITED NATIONS
by
Ken Ani Charles
Thesis submitted in fulfilment of the requirements for the degree
DOCTOR OF PHILOSOPHY
(REAL ESTATE)
Faculty of Engineering, Built Environment and Information Technology,
UNIVERSITY OF PRETORIA
Supervisor: Professor C E Cloete
MARCH 2010
, TABLE OF CONTENTS
CONTENTS PAGE
Title Page ………………………………………………………………………… i
Table of Contents ………………………………………………………………… ii
List of tables ……………………………………………………………………… vi
List of Charts & Figures……….. ………………………………………………… viii
Certification ………………………………………………………………………. x
Dedication ………………………………………………………………………... xi
Declaration ……………………………………………………………………….. xii
Acknowledgement ………………………………………………………………… xiii
Abstract …………………………………………………………………………… xiv
CHAPTER I
INTRODUCTION ……………………………………………………………….. 1
1.0 GENERAL INTRODUCTION…………………………………………….1
1.1 The Decision To Outsource……………………………………………….. 7
1.1.1 Decision-making Criteria…………………………………………………. 10
1.1.2 Outsourcing Scorecard…………………………………………………….. 11
1.2 CONCLUSION…………………………………………………………… 11
1.3 THE PROBLEM AND ITS SETTING…………………………………. 13
1.3.1 The Statement of the Problem ……………….…………………………… 13
1.4 AIMS AND OBJECTIVES OF THE THESIS...……………………………13
1.5 THE HYPOTHESIS ……………………………………………………… 14
1.5.1 The Research Hypothesis ………………………………………………… 14
1.6 DELIMITATION………………………………………………………… 14
1.7 THE ASSUMPTION ……………………………………………………... 14
1.8 IMPORTANCE OF THE THESIS…………………………………………14
1.9 DEFINITION OF TERMS………………………………………………... 15
ii
,CHAPTER II
LITERATURE REVIEW ………………………………………………………… 16
2.0 GENERAL INTRODUCTION…………………………………………….16
2.1 OUTSOURCING MILITARY FUNCTIONS OF PEACEKEEPING
OPERATIONS ……………………………………………………………. 32
2.2 OUTSOURCING SUPPORT FUNCTIONS OF PEACEKEEPING
OPERATIONS ……………………………………………………………. 44
2.3 MAKING THE DECISION TO OUTSOURCE………………………….. 51
2.3.1 The Decision-Making Process……………………………………………… 62
2.3.2 Why Outsource …………………………………………………………….. 83
2.3.3 What to Outsource ………………………………………………………… 92
2.4 THIRD PARTY LOGISTICS SERVICE PROVIDERS…………………... 104
2.4.1 Small Sized Providers ……………………………………………………… 106
2.4.2 Large Sized Providers……………………………………………………….. 107
2.5 THE TRANSITION TO OUTSOURCING ………………………………. 109
2.5.1 Planning and Managing Transitions with Service Providers………………….110
2.5.2 Selecting the Third Party Service Provider…………………………………... 115
2.5.3 Negotiating Outsourcing Contracts………………………………………... 126
2.5.4 Managing and Evaluating the Outsourced Contract with
Service Providers……………………………………………………………. 128
2.5.5 Implementing the Outsourcing Contract Successfully……………………… 144
2.5.6 Managing the Re-negotiation or End of the Outsourcing Contract………… 154
2.6 DECISION-MAKING CRITERIA………………………………………... 161
2.7 DECISION-MAKING SCORECARD……………………………………. 174
2.8 SUMMARY………………………………………………………………… 177
CHAPTER III
DATA COLLECTION AND METHODOLOGY………………………………. 179
3.0 INTRODUCTION……………………………………………………….. 179
3.1 METHODOLOGY……………………………………………………….. 180
iii
, 3.2 INSTRUMENTATION …………………………………………………… 181
3.3 DATA COLLECTION…………………………………………………….. 181
3.4 SAMPLE…………………………………………………………………… 184
3.4.1 Sample from Third Party Service Providers…………………………………. 185
3.4.1.1 Third Party Service Providers……………………………………………….. 185
3.4.2 Sample from Public Sector Manufacturing Firms…………………………… 197
3.4.2.1 Private Sector Manufacturing Firms………………………………………… 199
3.4.3 Sample from UN Peacekeeping Operations ……………………………….. 207
3.4.3.1 UN Peacekeeping Operations ……………………………………………… 208
3.5 SUMMARY………………………………………………………………… 217
CHAPTER IV
PRESENTATION AND INTERPRETATION OF DATA………………………. 218
4.0 INTRODUCTION………………………………………………………… 218
4.1 ANALYSIS OF CONSOLITDATED DATA FROM THE GROUPS …… 220
4.2 ANALYSIS OF DATA FROM THIRD PARTY SERVICE PROVIDERS... 261
4.2.1 Service Providers Survey and Interview Findings………………………….. 261
4.3 ANALYSIS OF DATA FROM MANUFACTURING FIRMS …………… 264
4.3.1 Manufacturing Firms Survey and Interview Findings………………………. 264
4.4 ANALYSIS OF DATA FROM UN PEACKEEPING OPERATIONS. .… 268
4.4.1 United Nations Observer Mission in Georgia (UNOMIG)…………………. 269
4.4.2 United Nations Interim Administration Mission in Kosovo (UNMIK)……. 272
4.4.3 United Nations Peacekeeping Force in Cyprus (UNFICYP)……………….. 275
4.4.4 United Nations Interim Force in Lebanon (UNIFIL)………………………. 278
4.4.5 United Nations Disengagement Observer Force (UNDOF)………………. 281
4.4.6 United Nations Mission in the Democratic Republic of the
Congo (MONUC)………………………………………………………… 284
4.4.7 United Nations Operation in Côte d'Ivoire (UNOCI)…………………….. 287
4.4.8 United Nations Mission in Ethiopia and Eritrea (UNMEE)………………. 290
4.4.9 United Nations Mission in Liberia (UNMIL)……………………………….. 293
4.4.10 United Nations Mission in the Sudan (UNMIS)……………………………. 296
4.5 DECISION-MAKING CRITERIA AND SCORECARD………………… 302
iv
by
Ken Ani Charles
Thesis submitted in fulfilment of the requirements for the degree
DOCTOR OF PHILOSOPHY
(REAL ESTATE)
Faculty of Engineering, Built Environment and Information Technology,
UNIVERSITY OF PRETORIA
Supervisor: Professor C E Cloete
MARCH 2010
, TABLE OF CONTENTS
CONTENTS PAGE
Title Page ………………………………………………………………………… i
Table of Contents ………………………………………………………………… ii
List of tables ……………………………………………………………………… vi
List of Charts & Figures……….. ………………………………………………… viii
Certification ………………………………………………………………………. x
Dedication ………………………………………………………………………... xi
Declaration ……………………………………………………………………….. xii
Acknowledgement ………………………………………………………………… xiii
Abstract …………………………………………………………………………… xiv
CHAPTER I
INTRODUCTION ……………………………………………………………….. 1
1.0 GENERAL INTRODUCTION…………………………………………….1
1.1 The Decision To Outsource……………………………………………….. 7
1.1.1 Decision-making Criteria…………………………………………………. 10
1.1.2 Outsourcing Scorecard…………………………………………………….. 11
1.2 CONCLUSION…………………………………………………………… 11
1.3 THE PROBLEM AND ITS SETTING…………………………………. 13
1.3.1 The Statement of the Problem ……………….…………………………… 13
1.4 AIMS AND OBJECTIVES OF THE THESIS...……………………………13
1.5 THE HYPOTHESIS ……………………………………………………… 14
1.5.1 The Research Hypothesis ………………………………………………… 14
1.6 DELIMITATION………………………………………………………… 14
1.7 THE ASSUMPTION ……………………………………………………... 14
1.8 IMPORTANCE OF THE THESIS…………………………………………14
1.9 DEFINITION OF TERMS………………………………………………... 15
ii
,CHAPTER II
LITERATURE REVIEW ………………………………………………………… 16
2.0 GENERAL INTRODUCTION…………………………………………….16
2.1 OUTSOURCING MILITARY FUNCTIONS OF PEACEKEEPING
OPERATIONS ……………………………………………………………. 32
2.2 OUTSOURCING SUPPORT FUNCTIONS OF PEACEKEEPING
OPERATIONS ……………………………………………………………. 44
2.3 MAKING THE DECISION TO OUTSOURCE………………………….. 51
2.3.1 The Decision-Making Process……………………………………………… 62
2.3.2 Why Outsource …………………………………………………………….. 83
2.3.3 What to Outsource ………………………………………………………… 92
2.4 THIRD PARTY LOGISTICS SERVICE PROVIDERS…………………... 104
2.4.1 Small Sized Providers ……………………………………………………… 106
2.4.2 Large Sized Providers……………………………………………………….. 107
2.5 THE TRANSITION TO OUTSOURCING ………………………………. 109
2.5.1 Planning and Managing Transitions with Service Providers………………….110
2.5.2 Selecting the Third Party Service Provider…………………………………... 115
2.5.3 Negotiating Outsourcing Contracts………………………………………... 126
2.5.4 Managing and Evaluating the Outsourced Contract with
Service Providers……………………………………………………………. 128
2.5.5 Implementing the Outsourcing Contract Successfully……………………… 144
2.5.6 Managing the Re-negotiation or End of the Outsourcing Contract………… 154
2.6 DECISION-MAKING CRITERIA………………………………………... 161
2.7 DECISION-MAKING SCORECARD……………………………………. 174
2.8 SUMMARY………………………………………………………………… 177
CHAPTER III
DATA COLLECTION AND METHODOLOGY………………………………. 179
3.0 INTRODUCTION……………………………………………………….. 179
3.1 METHODOLOGY……………………………………………………….. 180
iii
, 3.2 INSTRUMENTATION …………………………………………………… 181
3.3 DATA COLLECTION…………………………………………………….. 181
3.4 SAMPLE…………………………………………………………………… 184
3.4.1 Sample from Third Party Service Providers…………………………………. 185
3.4.1.1 Third Party Service Providers……………………………………………….. 185
3.4.2 Sample from Public Sector Manufacturing Firms…………………………… 197
3.4.2.1 Private Sector Manufacturing Firms………………………………………… 199
3.4.3 Sample from UN Peacekeeping Operations ……………………………….. 207
3.4.3.1 UN Peacekeeping Operations ……………………………………………… 208
3.5 SUMMARY………………………………………………………………… 217
CHAPTER IV
PRESENTATION AND INTERPRETATION OF DATA………………………. 218
4.0 INTRODUCTION………………………………………………………… 218
4.1 ANALYSIS OF CONSOLITDATED DATA FROM THE GROUPS …… 220
4.2 ANALYSIS OF DATA FROM THIRD PARTY SERVICE PROVIDERS... 261
4.2.1 Service Providers Survey and Interview Findings………………………….. 261
4.3 ANALYSIS OF DATA FROM MANUFACTURING FIRMS …………… 264
4.3.1 Manufacturing Firms Survey and Interview Findings………………………. 264
4.4 ANALYSIS OF DATA FROM UN PEACKEEPING OPERATIONS. .… 268
4.4.1 United Nations Observer Mission in Georgia (UNOMIG)…………………. 269
4.4.2 United Nations Interim Administration Mission in Kosovo (UNMIK)……. 272
4.4.3 United Nations Peacekeeping Force in Cyprus (UNFICYP)……………….. 275
4.4.4 United Nations Interim Force in Lebanon (UNIFIL)………………………. 278
4.4.5 United Nations Disengagement Observer Force (UNDOF)………………. 281
4.4.6 United Nations Mission in the Democratic Republic of the
Congo (MONUC)………………………………………………………… 284
4.4.7 United Nations Operation in Côte d'Ivoire (UNOCI)…………………….. 287
4.4.8 United Nations Mission in Ethiopia and Eritrea (UNMEE)………………. 290
4.4.9 United Nations Mission in Liberia (UNMIL)……………………………….. 293
4.4.10 United Nations Mission in the Sudan (UNMIS)……………………………. 296
4.5 DECISION-MAKING CRITERIA AND SCORECARD………………… 302
iv
