Off Shoring
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Off Shoring

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All about off-shoring & why a company should go for it.

All about off-shoring & why a company should go for it.

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Off Shoring Off Shoring Presentation Transcript

  • Offshoring…
    Operations Management
    Group – “8”
  • Agenda
    Offshoring
    Why Offshoring?
    Commonly Offshored Streams
    Advantages & Disadvantages.
    About the case:
    Facts
    Issues
    Suggestions
  • Offshoring
    Allocation of specific business process to a specialist
    external service provider.
  • Why Offshoring?
    Lack of expert-labor in some portions of the business process.
    Availability of cheaper labor, whilst not comprising on the quality of output.
    Ability and feasibility to concentrate on the other crucial business process.
  • Manufacturing
    Offshoring
    IT Support
    Accounting
  • Offshoring Streams
    Content Development
    Web Design and Maintenance
    Recruitment
    Logistics
    Technical/Customer Support
  • Advantages & Disadvantages
    Advantages
    Disadvantages
    Risk of exposing confidential data
    Synchronizing the deliverables
    Hidden costs
    Lack of customer focus
    Swiftness and Expertise
    Concentrating on core process rather than the supporting ones
    Risk-sharing
    Reduced Operational and Recruitment costs
  • About the case
    Facts:
    Sales was increasing constantly along with the cost.
    Such an increase led them to shift to low cost region.
    Campaign in the name of “Keep Castle Bridge British” was being led by trade unionists, media & celebrities.
    There was negative reaction to “Made in Malaysia”.
    Raw materials were coming from all over the world.
    Owners of Castle Bridge are from everywhere & Britishness is not their priority but profit is.
    Initially it was a niche market but then it started considering all the segments of the society.
  • Adding headquarter jobs constantly.
    British Economy was loosing 30 million working days annually due to labor disputes.
    Decline in no. of employees in manufacturing industry which were:
    Male
    Female
    31 %
    18%
    17%
    6%
  • Issues
    What about the staff?
    Whether to go for a fiscal strategy or people strategy?
    • Threat to company’s reputation as British brand.
    • Shoppers reaction to goods “Made in China”.
  • Suggestions
    Strategic plan:
    Headquarters are in London.
    Production in low cost region.
    Goods were being sold through retail outlets.
    Revamp and global reach for the brand.
    Communicate management intentions & motives.
    Rebuild employees confidence & trust.
    Make a tag-name as:
    “Design in England”;”Made in Malaysia”
  • Sugguestions (Contd.)
    Company should go for Operational Restructuring.
    Clear about its strategy & objectives.
    Share its goals & values with shareholders.
  • Conclusion
    Company should go for “Offshoring” because global doesn’t means shedding you heritage & being British doesn’t mean one can’t have officials or workers from other parts of the world.
  • PrafulAnchaliya
    THANK YOU
    ShallyRathi
    SanyamSinghal