Sourcing Scenarios Case Questions
Julien Levesque June 17, 2010 MISM 2301
Sourcing Scenarios Case Questions
Case 1: Outsourcing 1. Develop a table that captures the “pros” and “cons” of this corporate decision. Pros | Cons | Improved quality * Operational and management activities * Accurate record of transactions | Jeopardy of quality * Poor communication between suppliers * Testability * Qualifications of outsourcing company | Cost effective * Lowers cost service to the business | Quality of service * Stakeholders are affected and there is no single view of quality | Allows them to focus on the core business * Financial services | Image of company * Public opinion regarding outsourcing * Staff turnover | Operational expertise and access to talent * Too difficult or time consuming to develop it in-house | Communication problems with transferred employees * Company knowledge could be jeopardized | Standardizing business processes, IT services, and application services * More access to services because they have more resources and time to devote into other aspects of their company | Security, legal, and compliance issues * Fraud * Liability for actions is there but only until employees transfer |
2. List the reasons why Southwest chose outsourcing? Was it the right choice? * Business growth required the need for hardware and software upgrades * This was the RIGHT choice * It is important to keep clients happy and be able to satisfy their needs while remaining profitable * IT can enable business processes * This was the RIGHT choice * Easier to analyze transactions * Make more informed decisions when manipulating information * Outsourcing vendor hired many of the IT staff * This was the RIGHT choice * Knowledge of clients and necessary procedures * Hardware and software updates meet client needs * This was the RIGHT choice * There was a fee-based
Sourcing Scenarios Case Questions
Case 1: Outsourcing 1. Develop a table that captures the “pros” and “cons” of this corporate decision. Pros | Cons | Improved quality * Operational and management activities * Accurate record of transactions | Jeopardy of quality * Poor communication between suppliers * Testability * Qualifications of outsourcing company | Cost effective * Lowers cost service to the business | Quality of service * Stakeholders are affected and there is no single view of quality | Allows them to focus on the core business * Financial services | Image of company * Public opinion regarding outsourcing * Staff turnover | Operational expertise and access to talent * Too difficult or time consuming to develop it in-house | Communication problems with transferred employees * Company knowledge could be jeopardized | Standardizing business processes, IT services, and application services * More access to services because they have more resources and time to devote into other aspects of their company | Security, legal, and compliance issues * Fraud * Liability for actions is there but only until employees transfer |
2. List the reasons why Southwest chose outsourcing? Was it the right choice? * Business growth required the need for hardware and software upgrades * This was the RIGHT choice * It is important to keep clients happy and be able to satisfy their needs while remaining profitable * IT can enable business processes * This was the RIGHT choice * Easier to analyze transactions * Make more informed decisions when manipulating information * Outsourcing vendor hired many of the IT staff * This was the RIGHT choice * Knowledge of clients and necessary procedures * Hardware and software updates meet client needs * This was the RIGHT choice * There was a fee-based