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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 external change that may have influenced Edpro's decision to outsource programming could be the increasing competition in the software industry. As competitors began adopting more cost-effective practices, Edpro might have felt pressure to reduce its operational costs and improve efficiency, prompting a shift to outsourcing.
Step 2
Analyse the possible impact on management AND employees of outsourcing programming.
Answer
Outsourcing programming can significantly impact both management and employees at Edpro.
Impact on Management: Management may face challenges in coordinating projects across different geographical locations. With outsourcing, they might need to establish robust communication channels and manage relationships with external vendors, which can be time-consuming and complex. However, outsourcing can also allow management to focus on core business strategies and innovation, possibly leading to enhanced productivity in areas other than programming.
Impact on Employees: For employees, outsourcing may lead to job insecurity or layoffs as programming tasks are transferred to external teams. This can affect morale and productivity among existing staff who may feel their roles are under threat. On the flip side, it could open up opportunities for current employees to develop new skills or shift towards more critical roles within the company, as routine tasks are outsourced.