Case Questions: Sourcing Scenarios

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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...
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