Evaluation of Outsourcing Activities of the Subscribers Services Sector of Water and Wastewater Company based on the System Dynamic Approach: Hormozgan Province

Today, many activities have been outsourced, some of which have been successful and have continued, and some of them have been reversed because of failure. Therefore, it can never be claimed that outsourcing is, in itself, beneficial, unless outsourced activities are evaluated. Regarding the importance of the issue, the main objective of this research is to determine the extent to which the outsourcing goals are achieved and the probable improvements in the subscribers services sector of the water and wastewater company of Hormozgan province. In this research, the system dynamics approach is used to evaluate the outsourcing process. At first, after reviewing the theoretical literature and the experts’ opinions, key variables were indentified and causal relationships among these variables were depicted. Then, the mathematical relations among these variables were determined and, accordingly, the study system was simulated in Hormozgan province water and wastewater Company during the period 2001 to 2027. The findings showed that outsourcing reduces the number of employees, reduces the service provision waiting time and reduces costs in the subscriber services sector of the company. Finally, in order to improve outsourcing performance in line with outsourcing goals, some policies to improve suppliers’ performance evaluation and suppliers credit enhancement were proposed and the results of these policies were simulated.