Lesson Plan

• Describe the concept of outsourcing and its main rationales.
• Analyse how outsourcing influences capacity utilisation and overall cost structures.
• Evaluate the advantages and disadvantages of outsourcing using a make‑or‑buy framework.
• Apply cost‑benefit formulas to determine whether a specific activity should be outsourced.
• Identify strategic risks of outsourcing and propose mitigation measures.

• Projector and screen
• Whiteboard and markers
• Printed case‑study handout (Company X)
• Worksheet with cost‑benefit calculations
• Calculator for each pair
• PowerPoint slides covering key concepts
• Decision‑making flowchart diagram

Begin with a quick poll: “Which business activities could you imagine a company outsourcing and why?” Connect responses to prior knowledge of core vs. non‑core functions. Explain that today’s success criteria are to explain outsourcing’s impact on capacity utilisation and to use a simple cost model to make a make‑or‑buy decision.

1. Do‑now (5’) – Students list possible outsourced activities on sticky notes; teacher collects and displays common ideas.
2. Mini‑lecture (10’) – Define outsourcing, outline reasons (cost, focus, expertise, capacity, flexibility, risk sharing) with PowerPoint.
3. Case‑study analysis (15’) – In pairs, students work through the Company X handout, calculate in‑house vs. outsourcing cost using the provided formulas, and note capacity utilisation changes.
4. Whole‑class debrief (10’) – Groups share calculations; teacher highlights advantages, disadvantages, and strategic considerations.
5. Decision‑making activity (10’) – Using the flowchart, students complete the make‑or‑buy checklist for a new scenario presented by the teacher.
6. Exit ticket (5’) – Each student writes one key benefit and one key risk of outsourcing to submit before leaving.

Recap the main points: outsourcing can free capacity and cut costs but brings control and dependency risks. Collect exit tickets to gauge understanding, then assign homework to research a real‑world company that has outsourced a function and prepare a brief report on the outcomes.