Essay about Outsourcing at Office Supply Inc. Case

INTRODUCTION Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the†¦show more content†¦Besides, the facilities maintenance for TIS would be less expensive because it could more effectively manage floor space, heating and air conditioning, and power consumption, and its facility was located in a less expensive city. Lastly , TIS had less disaster recovery and corporate overhead costs because it had more efficient management and economies of scale. Outsourcing would allow the OSI to focus only on its core business and would be more cost effective for it to reduce capital infrastructure costs. Also improving employee satisfaction with higher value addition jobs and making the best use of competitive resources available worldwide. Using an outsourced company (TIS) would give it the same standard hardware and software platform. And should be high speed and have a lower cost of Telecommunications. Additional, here are a series of themes that explain most of the pressures for OSI to outsource. First of all, managers concerns about cost and quality drive outsourcing. The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly. Second, failure to meet service standards can force management to find other ways of achieving reliability. Finding a company in which cumulative IT management neglect eventually culminated in an out-of-control situation from which the current ITShow MoreRelatedFutronics Case949 Words   |  4 PagesIntroduction Background of the Case FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services. 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