Professional Issues and Practice: Outsourcing Analysis for SCP Ltd

This report provides an analysis of outsourcing strategies for SCP Ltd, a company with manufacturing and retailing operations. It begins with an introduction to outsourcing and an overview of SCP Ltd. The report then explores different outsourcing models, including joint venture offshoring as global shared services and multi-sourcing models, discussing their benefits and limitations. Legal and environmental issues in the UK, China, and India are examined, considering potential fines and contract cancellations. The report also assesses requirements related to IT, human resources, and administrative systems. Based on these factors, the report recommends China as the preferred country for outsourcing due to its technological environment, diversified business activities, and cost efficiency. The conclusion emphasizes the advantages of offshore outsourcing and highlights China's suitability for IT-related outsourcing. References to relevant academic sources are also included.

Professional Issues
and Practice

Content
 Introduction
 Overview of the company
 Benefits and limitations of different outsouring model
 Legal and environmental issues to the organisation
 Requirements that affect choice of country
 Recommendation
 Conclusion

INTRODUCTION
 Outsourcing is the activity which includes hiring of
someone other for the performance an organisational
functions in expertise manner.
 These third parties are responsible for the completion of
work in accordance to the standards and requirements of
an organisation.

Overview
SCP Ltd. has business operations in both type of functions,
manufacturing and retailing. The main purpose of the
organisation is to build long lasting image in society through
manufacturing and retailing modern design products. In
actual, this organisation was founded in 1985.

Different Outsourcing Models
Joint venture offshoring as global shared services: This
is the method that includes ties up with the local
organisation exists in other country.
Multi sourcing model: This is the model where
organisation enters into the parallel agreement with
different number of suppliers and vendors present in
another nation.

Benefits And Limitations Of Joint
Venture Offshoring As Global Shared
Services
Benefits: This will creates the benefit in form of using the strength of
other organisation having expertise in performance of functions like
IT, Human resource and administration.
Limitations: No control over the operations of other organisation.
This will sometimes result into occurrence of fraud that have direct
negative impact over the image of an organisation along with
monetary loss.

Benefits And Limitations Of Multi
Sourcing Model
Benefits
 Separate contract provides more expertise along with
removes the dependency over one supplier.
Limitations
 Requires investment of higher cost in contracting three
different experts.

Legal and environmental issues in UK
 Fine due to non consideration of new laws occurred
after exist of UK from EU.
 Cancellation of agreement due non fulfilment of
standards and requirements in accordance to the
existing or new specified laws.

Legal And Environment Issues In China
 Fine, if not able to fulfil all legal requirements
 Cancellation due to non fulfilment of China standards
and signed agreement terms
 Fine, if having contribution towards carbon emission
above to the permissible limit

Legal And Environment Issues In India
 Fine in case of non fulfilment of laws and standards
 Cancellation due to non fulfilment of mentioned
terms and conditions in agreement
 Cancellation of an agreement or fine due to having
negative impact on environment in case of excessive
carbon emission

Requirements
(IT Systems)
 Existence of technological environment
 Freedom of working on the basis policies, laws and
legislation (Specific to project nature)
 Presence of high knowledgeable personnels
 Persistence of IT organisations

Human Resource Systems
 Presence of expert level organisations
 Past record towards developing good workforce of any
organisation
 Existing of policies, laws and legislations related to
outsourcing (Specific to project nature)
 Investment cost along with availability of talented personnels