Impact of ICT evolution on fleet sourcing model of Taxicab industry

Research topic for Managing Global Sourcing module

The worldwide existence of ICT has touched almost every industry on current age and ICT evolution has not only changed data processing capacity and increased communication of industries but also worked as a catalyst to transform business model of industries in several aspects. Every industry has special strategies for sourcing and ICT has also played major roles to evolve different sourcing model for industries. ICT has significant roles in evolution of taxicab industry too.   

Taxicab industry has chronicled records. The first horse-drawn carriage services began operating in both Paris and London in the early 17th century and first time electric battery-powered taxis became available at the end of the 19th century in London. Since 19th century Taxi industry has undergone a series of reform and development. ICT has not only digitalized taxi industry, but it has also worked as an impetus to decide the future strategy for this industry.

Our aim is to identify the relation (or role) between ICT and sourcing model of the taxi industry for fleet management. How ICT has helped to evolve sourcing model in the taxicab industry for fleet management.

What is outsourcing

Outsourcing is use of external resources to accomplish work/ task instead by internal resources.  Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who become valued business partners. Companies have always hired contractors for particular types of work, or to level-off peaks and troughs in their workload, and have formed long-term relationships with firms whose capabilities complement or supplement their own. However, the difference between simply supplementing resources by “subcontracting” and actual outsourcing, is that the latter involves substantial restructuring of particular business activities including, often, the transfer of staff from a host company to a specialist, usually smaller, company with the required core competencies.