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Should FYC outsource more?

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4-6 paragraphs

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Details: 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?

*Critically examine the role of information management in corporate strategy.

*Research and propose methods of assimilating emerging technologies.

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Solution Summary

Debbie is compiling a report on business processes outsourcing, and she needs your help in recommending an IT outsourcing/offshoring strategy.

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Should FYC outsource more?

FYC should outsource more to obtain comparative advantages in terms of cost. Outsourcing will enable FYC to improve operatonal margins and allow it to focus on core business and thus, will enhance its competitiveness in the marketplace. FYC should definately try to minimize operational expenses by deploying high quality outsourced service providers in locations like India, China or even nearshore locations like Mexico.

Should FYC outsource offshore or nearshore?

I would advise FYC to start with nearshoring and if the model is successful, proceed ahead with outsourcing. Nearshoring will be ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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