Instructions

As a manager of an organization, you will often need to find ways to cut
costs. One way to cut costs is to outsource by hiring another organization to
perform the service. Consider the scenario below.

As a manager for the public outreach department, you realize that the current
system for managing outreach issues is outdated. You would like to have a new
outreach system developed using the Cloudera platform to help manage big data.
However, no one in the organization has the expertise. You will have to
outsource the project to save on costs and avoid management problems. Two
companies have sent in a bid—one from Vancouver, Canada, and one from Mumbai,
India. The bid from India was slightly lower than the bid from Canada. Compose
a response that includes the elements listed below.

• Define what is meant by outsourcing.
• Explain how Peter Drucker’s statement (covered in the textbook in
  uCertify) about how one company’s back room is another company’s front room
  pertains to outsourcing. Use an example.
• Summarize the management advantages, cost reduction, and risk reduction of
  outsourcing.
• Summarize the outsourcing risks concerning control, long-term costs, and
  exit strategy.
• Discuss which company you would outsource to and why. Does distance
  matter?

Your case study must be at least two pages in length (not counting the title
and reference pages), and you must use at least two references as a source for
your essay. See the Suggested Reading section for some sample articles on
outsourcing. Be sure to cite all sources used in APA format, and format your
essay in APA style.