Current Media Report
December 2015
Assessment Item 1
BSB115 - Management
Holly Skinner
N8794511

Business:
Product:

It Fits!
Online Bespoke Tailoring Company

It Fits! Mission Statement:
Our purpose is to value societies individual dress sizes through the use of online bespoke tailoring utilising high quality sustainable materials while valuing employee diversity to tap into a rich talent pool and help people work to their full potential.

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Introduction
A recent article published in the Sydney Morning Herald (SMH) has commented on the problems that can emerge when outsourcing is driven by a cost-cutting obsession, noting that companies may forget about the value of hiring permanent employees. The article made reference to It Fits!, suggesting there was an excessive amount of outsourced labour. This report will highlight the key points of the article; further investigate the both negative and positive aspects of outsourcing, analysis the significance of these in relation to the sustainability of It Fits! Operations, and discuss any possible implications caused by the article.

Summary of the issue
Outsourcing is now a strategic choice for many companies and a continuing issue for managers and consultants. The transfer, negotiation and ongoing management of outsourced contracts all demand a great deal of people management.
The SMH article mentioned the grievance of our Technology Manager (TM), working on the Operating System Upgrade and Implementation Project; a critical view has been applied as this team is primarily specialist IT Contractors.
TM reported that the team’s main objective is to prolong the project, in order to extend their individual contracts; also commenting on the possibility of contractors abandoning the project opportunities more financially enticing “taking valuable project knowledge and skills, and potentially sensitive information with them”. Allegedly, the
Contractors lack concern for the Company and our customers, pronouncing repetitive failure of projects.

Implications for the management of It Fits!
As stated by Folsom, 2011, “the goals of outsourcing include circumventing distractions from the company’s core activities, acquiring specialized expertise, and reducing costs”, outsourcing should be applied to chore activities, not core elements of a company. It is vital to the sustainability of a business for core roles to remain with loyal employees, keeping the focus, the point of difference and the competitive edge within the company.
Telecommunications and Information Technology are among “Chore” functions that can successfully be outsourced to a specialist, without affecting the company focus.
The customer service, design, and manufacturing departments within It Fits! are the essential, core elements of this company. Information Technology, although a vital element in the process of our services, is not a core element. For the project to be successful, the Upgrade & Implementation project requires IT specialists, which currently, we do not have employed. This project, once complete, will eliminate the requirement for these specialists therefor, ultimately, outsourcing is essential for the project. 3

Conclusion
The article will not cause any negative implications to the reputation of It Fits!, however, it does highlight issues within the company that must be immediately addressed. What must be reviewed is the current management processes utilized within this project, closer monitoring must be must be implemented with regular reviews of the performance of the contracted team. Attention must be drawn to the project programme, time constraints must be highlighted and adhered to, KPI’s must be set, while focus maintaining focus on the budget. A further review of TM may suggest further training in Outsourcing Management is required as “know-how in collaborative relationships is essential in managing outsourcing” (Bustinza, 2010).
Organisations that choose to outsource must consider the benefits and measures that must be taken to mitigate the related risks; as well as educating their personnel about the benefits of outsourcing, including strategies to best manage the
Contractors.

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Reference List
Babin, R. and Nicholson, B . (August 2012). Sustainable Global Outsourcing. Retrieved from http://www.palgraveconnect.com.ezp01.library.qut.edu.au/pc/doifinder/10.1057/9781137 035318.0001
Bloomsbury Information. (2010). QFINANCE : The Ultimate Resource. Retrieved from http://www.eblib.com Bustinza, O. F., Molina, L. M., & Gutierrez-Gutierrez, L. (2010). Outsourcing As Seen From
The Perspective Of Knowledge Management. Journal of Supply Chain Management,
46(3), 23-39. Retrieved from http://search.proquest.com/docview/845503087?accountid=13380 Dinu, A. (2015). The Risks And Benefits Of Outsourcing. Knowledge
Horizons.Economics, 7(2), 103-104. Retrieved from http://search.proquest.com/docview/1686096998?accountid=13380 Featherstone, T. (July 2, 2015). Has Outsourcing Gone Too Far?. Sydney Morning Herald.
Retrieved from: http://www.smh.com.au/small-business/managing/the-venture/hasoutsourcing-gone-too-far-20150701-gi26td.html
Folsom, W Davis. (2011). "Outsourcing" in Encyclopedia of American business (0-8160-81123, 978-0-8160-8112-7), (p. 574).
Morgan, Stephanie J. (2009). The Human Side of Outsourcing. Wiley-Blackwell. DOI.
10.1002/9780470749456.ch14
Patel, A. B., & Aran, H. (2005). Outsourcing success: The management imperative. New
York;Basingstoke [England];: Palgrave Macmillan.
Waite, A (2009). "Outsourcing" in The Praeger Handbook of Human Resource Management
[Two Volumes (0-313-35015-9, 978-0-313-35015-3), (p. 531).
Willcocks, L.P., Cullen, S., Craig, A. (October 2010). The Outsourcing Enterprise . Retrieved from http://www.palgraveconnect.com.ezp01.library.qut.edu.au/pc/doifinder/10.1057/9780230
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