Ally Puzas, CEOErica Taylor, CFO

BuckleUpBaby is a custom basket business, located in the heart of

downtown Portland.  They are fairly new and have recently been experiencing tremendous growth

and are looking at expanding their business to meet growing customer

needs. They currently employ 25 full-time workers and they have hired Zadel Information Systems to consult possible

means for their expansion and improvement through IT outsourcing.

1. Their main concern is if they should outsource internationally or domestically.  Which would be the most cost effective? 

2. Another concern is whether they should outsource all of their order production and tracking information, part of it, or simply one or the other. 

3. They feel that customer satisfaction is their number one priority, and in order to handle their clients in the most efficient manner, they would like to know if they should keep all of their customer phone calls within the company, or if outsourcing these components would be beneficial as well. 

4. What kind of IT Outsourcing services would be of greatest benefit to their company. 

5. Lastly, if they use IT Outsourcing, will it be

more costly for the company than if they did everything internally.

According to the Information Technology Association of America, IT is…

“The study, design, development, implementation, support or

management of computer-based information systems, particularly

software applications and computer hardware”

Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company.

The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources.

Wikipedia Definition

Benefits of Outsourcing:1. Reduce overheads, free up resource2. Improve company focus on its core

competencies and strategic imperatives3. Re-allocate internal resources to higher-

value purposes4. Get access to specialized skill5. Address the issue of limited internal

resources6. Improve speed and service7. Manage more effectively problematic

functions

When choosing to outsource domestically or internationally, a company’s focus

should be on finding a balance between cost, performance, and risk objectives

There are benefits of both international and domestic outsourcing, as well as

drawbacks. Depending on a company’s needs, one is often better suited than

the other

1. Culture: Colloquialisms, language and life experience

2. Convenience: Location and travel-time3. Cost: Overall cost 4. Complexity: Needs of the company 5. Customer Satisfaction: Fulfilling

expectations of customers and their experience with the organization

Domestic (Onshore) Outsourcing:Processes which are highly manual and

error-prone Benefits:1. Decreased travel, communication costs2. Time zone differences are irrelevant3. Close, trusting relationship can be

formed at a fast pace4. Greater customer assurance from

dealing with domestic provider

Drawbacks:1. Hourly rate is generally higher2. Management and control problems

may arise3. Information exposure to third party is

of a greater concern

International (Offshore) Outsourcing:Processes which are clearly defined and

consistent among cultures

Benefits:1. Increases IT staffing flexibility2. Cost savings may be realized3. Time-to-market and competitive

advantage4. Greater technological agility

Drawbacks:1. Indirect costs may be higher due to

long-distance communication, training, and travel

2. International and political risk associated with transfer of internal customer data

3. Risk of displaced intellectual property

“Customer Satisfaction is our #1 concern.” -

BuckleUpBaby, Inc.Outsourcing Suggestions:1. Core competencies should be kept in-

house2. Web-design and maintenance3. Business Processes4. Payroll, accounting and logistics In-house Recommendations:1. Assembly of products 2. Call Center Services

• Specializing in Small and Medium Business Services

• Business Process Outsourcing (BPO)• Book Keeping/Accounting

• Tracking Information• Operations• Consulting

Business Process Outsourcing Services

• GMR International and Domestic Services:

• Offering complete internet solutions• Custom website design and

maintenance services• Profit-oriented ecommerce website

Website Maintenance Outsourcing

• IT Specialist Services• Custom Web Development• Strategic Development• Integrated Tracking

GateSix: Everything ITResource Type Specific Pricing

• Database Design and Programming• Microsoft Certified Partner

• XML Technology• Custom Software Development

Database Development and Design

• Think of the company you outsource to as a business partner

• Identify all core competencies and choose which processes will be outsourced

• Allow for customer feedback and suggestions about new processes

• Maintain customer confidentiality within the company while serving clients in the most efficient way