This caselet enables an understanding of the application of factor rating to evaluate outsourcing providers. The caselet provides a brief about the dilemma of choosing a supplier at National Electronics, a Chennai-based electronic parts manufacturing company. With an aim to focus on core products, the company decided to outsource some of its production. Upon request for bids, four suppliers responded. Now, the company Founder Chris Xandu has to finalize the outsourcing supplier based on certain criteria. He enlisted the assistance of an expert, Gopal Verma for this assignment. Gopal Verma had to find a precise method to select the supplier for outsourcing.

1. OUTSOURCING DILEMMA AT NATIONAL ELECTRONICS
This caselet enables an understanding of the application of factor rating to evaluate outsourcing providers.The
caselet provides a brief about the dilemma of choosing a supplier at National Electronics, a Chennai-based
electronic parts manufacturing company. With an aim to focus on core products, the company decided to
outsource some of its production. Upon request for bids, four suppliers responded. Now, the company Founder
Chris Xandu has to finalize the outsourcing supplier based on certain criteria. He enlisted the assistance of an
expert, Gopal Verma for this assignment. Gopal Verma had to find a precise method to select the supplier for
outsourcing.
Pedagogical Objectives
• To understand the basics of outsourcing
• To understand and use factor rating to evaluate outsource providers
Case Positioning and Setting
This caselet can be used for MBA, Executive MBA or Executive Development Programs to highlight the
following course:
• Operations Management course – Supplement 10: Outsourcing as a Supply Chain Strategy –To understand
basics of outsourcing and analyze how to evaluate the suppliers.
ABSTRACT
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