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Managing Customer Relationships in Offshore Outsourcing: B2Bcs, an Israeli Consulting Firm

Arup Kumar Das; Sangeeta Shah Bharadwaj; Kate M. Kaiser;

商品編號:9B11E024
出版日期:2011/06/22
再版日期:
商品來源:Ivey
商品主題:International Business; Management Science; Information Systems
商品類型:Case (Field)
涵蓋議題:Business Development;Retention Marketing;Value-based Management
難易度:5 - MBA/Postgraduate
內容長度:10 頁
地域:Israel
產業:
事件年度:2009

The objective of this case is to study an Israeli firm, B2Bcs, which is providing end-to-end services in establishing offshore project development teams and help firms in their decision to outsource projects offshore. B2Bcs was established in 2006 and initially concentrated on software development project outsourcing mainly to eastern European and Indian firms. They help clients throughout the entire project development life cycle from decision making to start of operations offshore. The firm also provides strategic planning and guidance, provides offshore site selection services and partners with customers for greater value and profit. An interesting aspect of B2Bcs's nature of work involves cross-cultural handshake, interfacing Israel based client organizations with service provider organizations in India and eastern Europe.

However, the recent economic downturn has made B2Bcs's customers extra cautious about the decision to set up an offshore development centre. Over the last few months, Israeli firms have been looking for less expensive outsourcing solutions as part of their various cost-reduction initiatives. They expect low-rate quotes from offshore service providers of low-cost destination countries such as India and eastern Europe. Unfortunately, India has not been hit very hard by the recession, unlike the West and hence the prices quoted by Indian service providers are still very high.

Of late, the company had been facing stiff competition from similar consulting firms. The key to getting business in this area was based on one's past relationships with key executives in client and vendor firms. Increasingly, other consulting firms also started exploiting these relationships to get new business, thus affecting B2Bcs's growth plans severely. In such a scenario, two broad questions need to be answered: 1) What is the new value proposition that B2Bcs should now offer to its clients? 2) How could B2Bcs help its clients find the right service provider at a competitive price?

The primary goal of this teaching case study is to examine the process of establishing the offshore outsourcing of projects. A background understanding of the various outsourcing theories will help students to map the theories with the case situation. Through this case study discussion, the students should achieve the following: 1) Learn the offshore outsourcing life cycle process (from client firm perspectives), including: a) vendor selection, b) selecting the outsourcing model, c) project staffing and recruitment, d) establishing outsourcing contracts, e) project monitoring and management, and f) monitoring service quality. 2) Learn the offshore outsourcing life cycle process (from service provider firm perspectives), including: a) contract negotiations, b) project execution and management, c) delivering service quality and value to the client, and d) building a relationship and partnership. 3) Discuss the existing value propositions being offered by B2Bcs to its Israeli customers as well as to its service provider customers. 4) Identify the new value proposition that B2Bcs should offer to retain and enhance its customer base.

教學手冊:8B11E024
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