Question a
Outsourced contract maintenance is increasingly becoming a prevalent method for most enterprises to uphold their assets. Cost saving is the driving force that is pushing most of the industries to outsourcing option. In-house wages, as well as benefits, may have become too costly for the Company to manage. Outsourcing is also associated with many disadvantages. There is the aspect of redundancy in management roles. Overlapping roles can create inefficiencies within the maintenance organization which results to too many bosses and not enough workers.
Question b
The main advantage of outsourcing is an effective way were a company cuts the costs as well as aiming to increase the profits. It is much better than exiting the business altogether. The bad side of outsourcing is the aspect of staff turnover. Outsourced staff do not possess much allegiance to the company. In-house, employees are always inclined to have more years of service at the facility than employees of a contract.
Question c
Flextronics’s role poses a long-term risk to Ericsson. On paper outsourcing often looks a great deal. It can be a very complex problem which results to plenty of opportunities for complication. For instance, Flextronics chooses to choose unrealistic timelines throughout the distribution it can lead to a host of problems. One such scenario is the inventory being not received on time which means that the consumer demand would not be met this can lead to revenue loss and further problems within the supply chain.
Question d
Apart for Ericsson, many other companies are also turning to outsourcing. The majority of the mobile app development is taking place in-house with companies preferring to access internal resources rather than contract out to third parties. Nearly one-third of all the projects are handed down to the external mobile teams. Instead of existing the market and also as a way of minimizing cost as well as maximizing profits.
