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FYC: Recommend an IT outsourcing offshoring strategy. Pros and cons of outsourcing?

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Debbie is compiling a report on business processes outsourcing, and she needs your help in recommending an IT outsourcing/offshoring strategy. As you know, FYC does do some outsourcing-they hire some on-site contractors off and on for development and installation work.

Should FYC outsource more?
Should FYC outsource offshore or nearshore?
If yes, why and what kind of applications and infrastructure?
If no, why not?
What are the key pros and cons of outsourcing?

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Solution Summary

This response provides an introduction to FYC, as well as a discussion on the outsourcing of the company and if it should outsource more. A discussion on the pros and cons of outsourcing as well as whether the company should engage in off-shoring or near-shoring is also provided in this 747 word solution with references.

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Business strategy for FYC

Introduction

FYC is the manufacturing company which was established in 1947 by Ronald J. Dirksen and Richard Woodart. The company flourished its business line into residential and commercial furniture. The company distributes its furniture products with the aid of retail stores. The main manufacturing plant of the company is located in the U.S. The organizational configuration of FYC is functional. The retail stores of FYC are positioned in various territories. Apart from this, to contend the manufacturing operations, the company utilizes bio-technology.

Outsourcing strategy

As FYC uses information technology for its manufacturing operations it is recommended to offshore more, as it will assist it to develop prognosticating decisions. If the recital of the company is up to the benchmark of the operational efficiency, it can make the decision to make more, but if the company is firmer in selling the furniture, it should opt for the decision to buy more which implies outsourcing more, therefore it should outsource more. FYC should buy IT inputs as well as services from other firms, which will further offer it the proficiency in the method of customized services that are indispensable to render a ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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