MBA
OUTSOURCING- SCM FULL TOPIC.docx

3 acer acer the taiwan based personal computer maker

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3. Acer Acer, the Taiwan-based personal computer maker, has used capability sourcing to make itself into the world’s second-largest PC manufacturer (Now slipped to 5 th rank, in terms of market share). Since the spin-off of its contract manufacturing operations in 2000, the company has made a big step ahead its competitors. The Acer executives knew it was good at branding and marketing and chose to outsource everything company had a harder time with , like manufacturing. The move led Acer to faster- growing sales and gains in market share. The company now maintains a strikingly lean and flexible operation. Its 8000 employees represent a workforce less than a seventh the size of its largest competitor, Hewlett Packard 4. Alibaba Alibaba may be known as a global marketplace; the company initially outsourced its development to a firm in the U.S. At the time, overseas development talent was still in short supply and the U.S. had the skills Alibaba needed to compete with ecommerce giants like eBay, and did it all behind the Chinese internet restrictions. Outsourcing development to contractors can provide affordable talent to start-up when it needs it the most. 5. Opera Opera is a modern and light web-browser born as a research project inside Telenor, the largest Norwegian telecommunications company. They opted to outsource part of the development to developers in more than 25 locations around the world to create and implement their platform – Outsourced for talent as well as cost cutting as this was start-up at that time and didn’t have capacity to involve so many full-time developers in its project. 6. WhatsApp Founded by two former Yahoo! employees, Brian Acton and Jan Koum. This start-up was launched in 2009, and eventually got acquired by Facebook in 2013 for $19.3+ billion. Actually, based on publicly available info, we know the core development was outsourced in Russia, starting with a contractor iPhone developer named Igor Solomennikov who joined the company eventually as CIO Failure cases Deloitte and the MassCourts project Deloitte, was involved in an IT outsourcing disaster back in 1996, when the company was contracted by the Massachusetts State Legislature to build a computer system for the state’s courts (MassCourts). The project took almost 4 times longer than initially planned, a colossal process spanning 19 years instead of the agreed 5.
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SAP and the MyCalPAYS payroll system MyCalPAYS is a payroll system that the state of California hired SAP to build. The project started in 2010 and was put on hold three years (and $254 million) later. The company did manage to deliver on the first of its 5 planned phases, even though this "revealed a significant volume of troubling errors". The project was terminated in 2013.
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  • Summer '13
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