Futronics IncFutronic, INC. In Reducing Business Costs

Assignment: Case Study November 14, 2010 Stevie W. Weaver (d03490478) Student DeVry University Professor Roy Chuang Today I will discuss options that would be good for Futronic, Inc. in reducing cost for the business. We will look at outside sourcing for some of the in-house services. We will discuss keeping the business in house and look to outsource some of the units. The benefits of outsourcing will not only save our business money, it can help us grow and hire more local employees with the money we save.

Change staff ratio from four full-time to two full-time and two hired for seasonal work| Reduce annual labor costs| Possibly. However the tradeoff would be slower delivery time and backlog of work on heavier “off peak” weeks. | Increase the information system department| Increase faster turn around time for product delivery | Possibly. This would cause a increase of cost of employee specialty | Sign a three year contract with options to renew| Save money and increase profit| Possibly.

This would give Futronics a chance to see the benefits of outsourcing

If we decide to outsource, the most important step is to plan your outsourcing strategy. There are some horror stories of outsourcing going wrong and this was definitely caused due to poor planning and hurried execution. For our outsourcing project to be successful, the most important step is identifying a suitable partner who is flexible to match your exact needs and go with the right outsourcing strategy. The companies that went with clear outsourcing strategies have enjoyed massive benefits, out thought their competition and are operating at an enviable position.

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Damani, 2010) Futronics is looking for ways to save money and grow the business. There seems to be things that come up that we are not 100% of but there are things we could do to increase product, revenue, and increase the gains of the business. As I research the possibilities, I have come to the conclusion that Futronics should look at the possibilities of outsourcing some of the areas in the business. Futronics should maintain control of the marketing and sales of our products.

We should also maintain control of our financial areas in the company. We should look at the idea of outsourcing the warehousing of product, and delivery of sales. With these possibilities, I think that our business can and will gain more respect with the competition and be able to take the business to higher heights that we have never been before. This will give us a great opportunity to grow our business and have a great satisfied customer base.

Reference

1. http://www. rightwayoutsourcing. com/ Copyright © 2009 | Right Way Outsourcing LLC
2. 2010 EzineArticles. com – All Rights Reserved Worldwide. Can Hiring an Outsourcing Company Save Your Business Money?
3. By Christopher S Ray Viraj Damani Level: Basic Viraj Damani is a Process Manager at ITCube Solutions with over 7 years experience in the ITES/BPO Industry.