Artemis Sports Wear - Essay Example

To outsource the billing system and communication system ASW has to include it within IT services because both the operations are predominantly information orientation and easier to be included in the initial phase. This step considerably cuts the cost of operations for ASW. Basically, billing is a tedious job and needs more and more information exchange between the company and customers and one has to track the information, which ultimately needs more and more people. After outsourcing the whole process ASW could concentrate on other operations and surplus employees could be retrained and redeployed to other productive activities.

ASW also needs to outsource its production process to global service providers from the emerging economies where the skilled labor force is predominantly cheaper. A cheaper labor force cut the cost considerably. ASW has proposed to outsource its other activities like customer services and HR activities in near future. Though outsourcing of HR activities affect employees considerably and cut the workforce by 54% and it has the potential for employee resentment and affects productivity as well as motivation adversely.

That's why ASW proposed to outsource it in the last. Apart from outsourcing the different operations, ASW has to study different various methods to improve productivity like Value engineering, Total Quality Management (Puffer and McCarthy, 1996), and lean manufacturing (Womack, Jones, and Roos, 1990). There is a downside to outsourcing. A company may be locked into a contract and may become too dependent on contractors. Where the unions are strong in sourcing could take place as in several organizations like VW (Volkswagen) and General Motors.

So before moving to outsource the operational processes, ASW has to analyze the whole situation and should take a holistic view. It should not follow the trend blindly. ASW has the main aim to cut the cost and provide the best to its customers and value to shareholders, not at the employee expense. So it must analyze the whole situation and outsource its operational processes carefully, systematically, and wisely.