Artemis Sports Wear Case Study Example | Topics and Well Written Essays - 750 words

Artemis Sports Wear - grammatical case Study ExampleBasically outsourcing means that products and operations are conducted to outside vendors that have expertise in a particular area. The aim may be to reduce costs by saving on personnel benefits, reduce personnel, or to be able to reassign employees to other tasks that are more important. It enables firms to steering on its core competencies and let outside firms do what these firms can do best. Outsourcing has become cost acidulous approach to several(prenominal) firms yet it sometimes does not meet its expectations. Consultants often promise 20-40% savings unless the average savings are about 9% (Byrne, 1996). Companies like Apple computer Inc. has sourced its system and lucre engineering, telecommunications and help-desk overhauls to Canadian firm. GM, Chrysler, Proctor & Gamble and lots of companies are outsourcing their operational processes to Latin America, china, India and other acclivitous nations. ASW is thinking of long-term growth and augment value to shareholders. So it has to develop long-term relationship to its process providers who are now present globally. By outsourcing IT services of Global service provider results in edged cost considerably. To outsource the billing system and communication system ASW has to include it within IT services because two the operations are predominantly information orientation and easier to be included in the initial phase. This shout considerably cut cost of operations for ASW. Basically billing is a tedious job and unavoidably more and more information exchange between company and customers and one has to track the information, which ultimately impoverishment more and more people. After outsourcing the whole process ASW could concentrate on other operations and trim employees could be retrained and redeployed to other productive activities. ASW also needs to outsource its production process to global service providers from the emerging economi es where the skilled labour force is predominantly cheaper. Cheaper labour force cut the cost considerably. ASW has proposed to outsource its other activities like customer services and HR activities in near future. Though outsourcing of HR activities involve employees considerably and cut the workforce by 54% and it has the potential for employee resentment and affect productivity as well as motivation adversely. Thats why ASW proposed to outsource it in the last. Apart from outsourcing the polar operations, ASW has to study different various methods to improve productivity like Value engineering, Total Quality Management (Puffer and McCarthy, 1996), and lean manufacturing (Womack, Jones and Roos, 1990). at that place is a downside to outsourcing. A company may be locked into a contract and may become in any case dependent on contractors. Where the unions are strong in sourcing could take place as in several organizations like VW (Volkswagen) and General Motors. So before movin g to outsource the operational processes, ASW has to analyze the whole blank space and should take a holistic view. It should not follow the trend blindly. ASW has the main aim to cut the cost and provide best to their customers and value to shareholders not at the employee expense. So it must analyze the whole blank space and outsource its operational processes carefully, systematically and wisely. References 1. Byrne, A. John (1996) Has outsourcing gone to fat Business