IT INFRASTRUCTURE OUTSOURCING AT SCHAEFFER

In fact, these perceived benefits of outsourcing are the primary reasons why businesses decide to outsource. Outsourcing helps a company to reduce the cost of their operation in two major ways. On the one hand, it saves businesses the cost of hiring employees which would be very demanding in terms of time and resources since it requires particularly skilled personnel to sift through many applications. On the other hand, the saves them the cost of purchasing specialized equipment to execute more specialized tasks. Employing IT expert would have been quite expensive for Schaffer Company especially because the standard salary is along the lines of 50,000 to 90,000 dollars per month. An advanced IT system would facilitate easier communication with the international branches, therefore, making their management of the branches easier.

New technological advancements would also aid the top management in making remote monitoring of the production and other activities which increases teamwork in branches and this serves as a remarkable aid in maintaining competitive advantage and achieving the goals of the company (Maria & Marian, 2005). To help Gartner company in choosing the correct IT Company, Schaffer Corporation hired Gartner Consulting Group to guide them in making the right choice. The following was the advice given by Gartner Group. First, Gartner said that it would be advisable for Schaffer to look into the background of the chosen company. Gartner also mentions that it was advisable for the Schaffer to know the skills offered by its employees. This would prevent duplication of efforts should the company hire a service already offered by the employees of the company.

This would help the company in hence saving a significant amount of money. Also, the move would help the Schaffer in determining the quantity of workforce that would be needed. It would also be important for the company to note the IT processes that would be followed in the installation of the required IT infrastructure. After studying all the companies, Schaffer Corporation decided to settle on ABC Company and DEF Corporation. It brought cooperation to the company for a meeting for negotiation. The two corporations were required to state their price quotation. ABC had stated a lower price requirement than DEF, hence Schaffer Corporation preferred ABC Corporation. The management complained that IT installation project was too costly. Hence at any time ABC Corporation imagined itself better off leaving, it would proceed without a second thought.

If ABC Corporation was to leave, it would force Schaffer to look for new employees because they had already fired the previous ones. Fresh employment would be costly for the company. They also argued that it was not morally right to abruptly fire IT experts in the company. Such a move would also demoralize the employees of the company, in addition to attracting swift action from labor unions. All in all, outsourcing would see that the project is finished in the shortest time possible and with the best outcomes. The numerous shortcomings were mentioned due to a lack of trust between the companies. For instance, some of the managers claimed that they were not sure that ABC Company would rob Schaffer Cooperation its customers, they were not sure of the cooperation of ABC Company in the long run, and many more.