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Edpro designs software and employs its own software programming team - HSC - SSCE Business Studies - Question 23 - 2008 - Paper 1
Question 23
Edpro designs software and employs its own software programming team. It plans to outsource programming in 2009. (a) Outline ONE external change that may have led E... show full transcript
Worked Solution & Example Answer:Edpro designs software and employs its own software programming team - HSC - SSCE Business Studies - Question 23 - 2008 - Paper 1
Step 1
Outline ONE external change that may have led Edpro to decide to outsource programming.
Answer
One significant external change that may have influenced Edpro's decision to outsource programming is the rapid advancement of technology. With evolving technologies, companies often seek specialized skills that they may not have in-house. By outsourcing, Edpro can leverage the expertise of external firms that are up-to-date with the latest technological trends and practices, potentially leading to enhanced product quality and innovation.
Step 2
Analyse the possible impact on management AND employees of outsourcing programming.
Answer
Outsourcing programming can have several impacts on both management and employees:
Impact on Management:
- Cost Management: Outsourcing may allow management to reduce operational costs by eliminating the need for additional in-house staff, training, and benefits, thus improving overall financial efficiency.
- Focus on Core Competencies: This shift enables management to concentrate on the company's core competencies, such as strategy and client relations, rather than day-to-day programming tasks.
- Change in Control: Management may experience a reduction in control over the programming process and output quality, leading to potential challenges in coordination and communication with the outsourcing partner.
Impact on Employees:
- Job Security Concerns: Employees may feel insecure about their jobs, fearing layoffs or reduced roles as programming tasks are moved to external providers.
- Skill Development Opportunities: On the other hand, some employees may find opportunities to upskill or transition into strategic roles within the company, especially if they shift to oversight or collaboration with outsourced teams.
- Work Environment Changes: The organizational culture may shift as teams adjust to new dynamics, potentially leading to resistance or morale issues among staff if not managed properly.