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Crafting And Executing An Offshore IT Sourcing Strategy GlobShops Experience

Solution Id Length Case Author Case Publisher
2532 1066 Words (5 Pages) C. Ranganathan, Poornima Krishnan, Ron Glickman Journal of Information Technology : JIT015
This solution includes: A Word File A Word File

Yes, I will agree with GlobShop's decision to offshore its IT systems to India because of various reasons. The company would have more management and authority over its "core competency”, considerable savings in terms of cost, and utilizing vendor skills. Contracting IT systems will allow the company to remain rivalrous at a world level.

Following questions are answered in this case study solution:

  1. How will you evaluate GlobShop’s approach to offshore IT sourcing? Do you agree with its decisions and rationale for the choice of tasks, vendor, and the onsite/offshore model?

  2. Briefly list the critical challenges that GlobShop faced in executing its offshore strategy? How did it overcome the people, cultural, and partnership-related challenges? What are the advantages and disadvantages of the tactics adopted by GlobShop? Would you have done anything differently?

  3. If you were GlobShop’s CIO, how will you tackle the following issues: a. Will you extend the offshoring deal with ISS? Why / Why not? What will you decide about future offshore vendor(s)? b. What will you decide about future offshoring tasks? Should GlobShop move more mission-critical activities offshore? What should be retained in-house? What are the implications of these decisions for the future IT organization?

Case Study Questions Answers

There are many aspects that played part in offshoring, which consist of, inexpensive labor, a better quality of products, absence of trade proficiency currently, accessibility of vastly skilled offshore professionals, and autonomy to focus on essential corporate functions. The regulation of core competency is to emphasize the trading of duty-free objects on an international level, as a result, the company decided to offshore an IT structure to support the reduction of costs and concentrate on increasing the sales volume. One more reason to offshore was that after the World Trade Centre incident, the company's revenue had diminished largely and there was a massive drop in customer traffic which made cost reduction vitally important. Subcontracting IT to ISS proposed noteworthy financial savings and converted the technique the company operated. One more reason to outsource important parts of its IT setup was “vendors proficiency” in a commercial capacity. Exploiting ISS would allow the company to obtain economies of scale and concentrate on refining essential commercial activities. ISS offered a very flexible option that permitted to modify or pull out when required. One more reason for outsourcing was an entire reorganization of the company’s corporate system. 

2. Briefly list the critical challenges that GlobShop faced in executing its offshore strategy? How did it overcome the people, cultural, and partnership-related challenges? What are the advantages and disadvantages of the tactics adopted by GlobShop? Would you have done anything differently?

At the start, there were some problems for GlobShop, the company discussed this with ISS and tried to negotiate the problems arising. Resultantly, ISS altered some of the individuals and procedures and GlobShop started to operate more widely on recognizing structures and procedures that can be additionally sub-contracted. As there were some significant improvements experienced within ISS, GlobShop tried to involve ISS to design a data storeroom that will permit quicker reporting and deliver professional spearheads with an understanding of innovative ways of handling data.

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