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Outsourcing decision making

You are a manager of a firm that produces widgets for both the Federal Government and open market third party vendors. Last week you and your board of directors were introduced to outsourcing your warehousing operations that would bring a substantial savings to the company. Now, it is very apparent that the company will save dollars by not having to staff the warehouse but, what other areas are effected by this outsourcing venture? How is IT affected? What is some of the fallout that will occur, both short and long term, of this venture?

How would you handle issues that surface because of outsourcing?

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Outsourcing in general can be defined as passing of service provision or production to external party. The main reason of outsourcing is to reduce cost for the business. Even though several other reasons can be listed up in favor of outsourcing, the company must not overlook the disadvantages of ...

Solution Summary

This solution is comprised of a detailed explanation to answer what other areas are effected by this outsourcing venture, how is IT affected, what is some of the fallout that will occur, both short and long term, of this venture, and how would you handle issues that surface because of outsourcing.

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