Ibm strategic outsourcing case study

A set of industry analysis templates. Smart Change in Strategy: The cost difference enables IBM to minimize its selling prices and, consequently, make its products more attractive to target customers.

The concept has matured. Unless managers periodically reexamine how they make sourcing decisions - and how resources get allocated - they can find themselves Selling maintenance contracts requires TSRs who understand the service requirements of each customer.

The lower production costs help optimize profit margins. Realizing the strength of the technology already in place at the center, company management decided to approach the problem as an outsourcing opportunity.

This paper will examine the strategic and business goals of IBM as well as the human resource challenges and possible mechanisms for resolving the employee-related challenges.

Each TSR can contact and service customers per day, far more than possible with field staff alone. When reviewing methods for acquiring and retaining customers, many companies have found that outsourced call centers provide a marketing channel that is not only cost-effective but highly profitable.

Working together, they developed a training program for both the staff already at the center as well as new hires. These firms are able to directly compete against the company by providing their products online. The Telesales Group handles account management and sales of IBM products and services that do not require field sales support.

Initially, the company used differentiation focus as its generic competitive strategy. The Direct Marketing Group is responsible for generating new product leads, upgrades, service contracts and seminar attendance.

Also, the lower costs allow the company to keep a higher profit margin if product prices are maintained. Accessing and contracting employees also become challenging for global business that operates in a global society dominated by cultural diversity and dynamics Bourdreau, For example, the company suffers from the aggressive approaches of other technology firms, such as IntelGoogleand Amazon.

Quotes are sent out 90 days prior to the contract expiration date, a phone call is made 60 days prior to the expire date, and the contract is renewed at 30 days. Further, training of the new employees can be possible through e-learning procedures facilitated by senior CASE STUDY 5 managers who have also undergone such trainings.

For example, the e-learning training of all the employees drawn from various departments at IBM led to a rise in the return on investments ROI by percent.

Strategic Human Resource Management at IBM - Case Study Example

Because each partner brings its "core competence" to the effort, it may be possible to create a best of everything organization. In addition, financial capacity is a strength that supports IBM in terms of acquisitions and global expansion.

Sun Microsystems is a case in point.

Business Strategic Management: Case Study of IBM

These challenges require development of strategic human resource approaches to contain or effectively address specific issues. When they discovered that this important revenue stream was eroding, they quickly identified the cause: Looking for the best solution, IBM decided a call center would provide the best blend of quality and cost- efficiency as a channel for both sales and customer service.Tags: Case Study & Case Analysis, Computer Technology, Generic Strategy (Porter's Model) & Intensive Growth Strategies, Global Economy, IBM, Information and Communications Technology Industry, Information Technology, Operations Management, Outsourcing.

Business Strategic Management: Case Study of IBM The management of the changes related to business operations in an increasingly globalized market provokes various managements aimed at adopting exclusively unique strategies to sustain profitable and productive operation of IBM.

© IBM Corporation IBM Strategic Outsourcing Client Innovation Briefing Issue 6 - September Tony Morgan, IBM UKI Global Technology Services. IBM can perhaps take solace from the fact that it is not the only company to make mistakes where outsourcing is concerned.

Other organizations have wrongly assumed that certain skills are unique to a particular field and have little or no transferable value. IBM Global Process Services Case Study Global Process Services for Human Resources IBM HR rises to the could focus on employee and strategic needs.

The arrangement has IBM GPS for HR, and IBM HR outsourcing clients will remain a. IBM Global Technology Services performs ongoing software maintenance and development, while IBM Strategic Outsourcing provides installation services, help desk services and the ongoing management of Bharti Airtel’s IT environment.

IBM’s Generic Strategy & Strategic Choices, SWOT Analysis

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Ibm strategic outsourcing case study
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