1. IT Outsourcing: International and Domestic
Ally Puzas, CEO
Erica Taylor, CFO

2. BuckleUpBaby, Inc.
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.

3. Issues To Be Addressed
Their main concern is if they should outsource internationally or domestically.  Which would be the most cost effective? 
Another concern is whether they should outsource all of their order production and tracking information, part of it, or simply one or the other. 
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. Issues Continued…
What kind of IT Outsourcing services would be of greatest benefit to their company. 
Lastly, if they use IT Outsourcing, will it be more costly for the company than if they did everything internally.

5. Information Technology Defined
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”

6. Outsourcing
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

7. Seven Reasons Why a Company Should Outsource
Benefits of Outsourcing:
Reduce overheads, free up resource
Improve company focus on its core competencies and strategic imperatives
Re-allocate internal resources to higher-value purposes
Get access to specialized skill
Address the issue of limited internal resources
Improve speed and service
Manage more effectively problematic functions

9. Finding a Balance
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

10. The Five C’s of Outsourcing
Culture: Colloquialisms, language and life experience
Convenience: Location and travel-time
Cost: Overall cost
Complexity: Needs of the company
Customer Satisfaction: Fulfilling expectations of customers and their experience with the organization

11. International vs. Domestic Outsourcing
Domestic (Onshore) Outsourcing:
Processes which are highly manual and error-prone
Benefits:
Decreased travel, communication costs
Time zone differences are irrelevant
Close, trusting relationship can be formed at a fast pace
Greater customer assurance from dealing with domestic provider

12. Domestic Outsourcing Drawbacks: Hourly rate is generally higher
Management and control problems may arise
Information exposure to third party is of a greater concern

13. International vs. Domestic Outsourcing
International (Offshore) Outsourcing:
Processes which are clearly defined and consistent among cultures
Benefits:
Increases IT staffing flexibility
Cost savings may be realized
Time-to-market and competitive advantage
Greater technological agility

14. International Outsourcing
Drawbacks:
Indirect costs may be higher due to long-distance communication, training, and travel
International and political risk associated with transfer of internal customer data
Risk of displaced intellectual property

15. “Customer Satisfaction is our #1 concern.” - BuckleUpBaby, Inc.
Company Culture
“Customer Satisfaction is our #1 concern.” BuckleUpBaby, Inc.
Outsourcing Suggestions:
Core competencies should be kept in-house
Web-design and maintenance
Business Processes
Payroll, accounting and logistics
In-house Recommendations:
Assembly of products
Call Center Services

16. Business Process Outsourcing Services
InfoSourcing
Specializing in Small and Medium Business Services
Business Process Outsourcing (BPO)
Book Keeping/Accounting
Tracking Information
Operations
Consulting
Business Process Outsourcing Services

17. Global Marketing Resources Web Team
GMR International and Domestic Services:
Offering complete internet solutions
Custom website design and maintenance services
Profit-oriented ecommerce website
Website Maintenance Outsourcing

18. GateSix: Everything IT Resource Type Specific Pricing
IT Specialist Services
Custom Web Development
Strategic Development
Integrated Tracking
GateSix: Everything IT
Resource Type Specific Pricing

19. ProAce Technology Services
Database Design and Programming
Microsoft Certified Partner
XML Technology
Custom Software Development
Database Development and Design

20. Considerations
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