Crafting And Executing An Offshore IT Sourcing Strategy GlobShops Experience Case Solution

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.