Running head: CASE STUDY THREE 1

Case Study Three

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January 12, 2021

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Case Study Three

Q1.

In the travel industry, Global Shop is a huge retail store. It is a $6 billion company

operating airports and hotel lobby groups in over 200 duty-free and general merchandise shops.

As there were adjustments in the global economy in the 1990s, Globshop had identified various

and nearly 15% in sales due to the Gulf War. All of these contribute to the choice of outsourcing

back to India. Outsourcing is perceived as a cost reduction tool. Globshop's CIO, Roger Den,

planned to move more IT work offshore. The following variables influence the decisions of

Globshop:

1. Core Competency Control: Globshop's core competence is really about retail sales

based on duty-free products. When giving it to a vendor, the company should focus on its

IT effort to improve profits and increase the company.

2. Cost Factors: Due to the Gulf War, there was a considerable drop in sales in 1991. And

when satisfying the interests of all the departments in the company, there would also be

many hidden expenses. There must be a decrease in the hidden costs and maintenance

costs to bring the market back and stabilize[ CITATION Dou12 \l 1033 ].

3. Vendors Expertise in Business Space: Not all suppliers are treated equally; there is so

much we understand. As a Paris-based startup, Globshop, and if the company outsources

to India, the CIO must take the appropriate measures to know if the supplier suits it. He

must know if the supplier in the specific business space has vast experience. This

Globshop will also achieve production economies and also concentrate on and enhance

competency standards areas.

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Q2.

To hand over all its development support to its merchandise framework and few retail

applications, Glob shop agreed to expand its partnership with ISS. CIO Roger Deen discovered

that it is essential to communicate. While this was not a simple job, the CEO viewed ISS as

colleagues rather than workers. A significant step in the transformation of the entire organization

has been taken to streamline the business. The ISSS established a good relationship between the

suppliers in India because of the difficulties posed by Globshop. The supplier company manager

and the supervisors here have spent quality time analyzing and recognizing the entire product

process, quality, and corporate strategy documentation process. It was also more difficult to

speed up the merger than initially expected.

External stakeholder groups were the main challenge they faced in coping with the

changes in the internal workers. If they had exchanged expertise to grow the business within a

certain amount of time, Globshop raised the workers' bonuses. For workers, they performed

culture training. The two firms had a formalized coordination and reporting system next, as ISS

took a large maintenance part. Globshop's other daunting role was to make accurate decisions

about centralized and decentralized data centers. And ISS ultimately approached the

centralization of the data, which was a massive success[ CITATION Lei10 \l 1033 ].

Q3.

Outsourcing comes with several advantages, but the whole outsourcing process often

needs good management to make it a success. Outsourcing requires a good management plan to

be practiced by both consumers and service providers, from choosing a vendor to securing the

contract, managing the partnership, and coping with the distributed process. One of the most
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significant factors for selecting outsourcing is an expense, as it helps both of them to earn profits.

Additionally, Globshop lowered its costs by 36 percent. It has been developed and consolidated

in the United States and India. For the customer satisfaction analysis performed by Globshop

after they reported outsourcing, there is an improvement from 2 to 3.6 on a 5 point scale. The

administrators moved more IT projects overseas due to the success rate[ CITATION out21 \l

1033 ].
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References

Brown, D., & Wilson, S. (2012). The Black Book of Outsourcing How to Manage the Changes,

Challenges, and Opportunities. Wiley.

Leimeister, S. (2010). IT Outsourcing Governance Client Types and Their Management

Strategies. Gabler Verlag. Retrieved from

https://www.google.co.in/books/edition/IT_Outsourcing_Governance/IYet2D3mH7wC?

hl=en&gbpv=0

outsource2india. (2021). How to manage your business for successful outsourcing. Retrieved

from outsource2india:

https://www.outsource2india.com/why_outsource/articles/managing_outsourcing.asp