Question

General Instructions:
For this case, the CFO of ABC Company, your boss, has asked you to follow up on a buzz phrase – outsourced product development. The CFO wants you to research the topic and provide a summary of what you found out. Complete and submit the assignment by 23:59 EST Wednesday. Then review the second post instructions. Post your final response by 23:59 EST Sunday.

Detailed Instructions:
You are the Controller for ABC Company, which makes and sells products. You have been asked by your boss, the CFO, to research outsourced product development and provide a summary of what you found. Write one to two paragraphs explaining the topic to the CFO. For your second post, if you use the link another student used, be sure to make your discussion new – don’t just repeat what your fellow peer posted. Include the link or APA reference for an article at the bottom of your post.

You will be graded based on following instructions, critical thinking, well-developed response, clear and concise, and mechanics such as grammar, punctuation, and sentence structure. Please see the enclosed rubric for more details.

Submission Instructions:
To avoid plagiarism, please be sure to follow APA format and cite the reference. If your comments are in your own words, it is not necessary to quote or cite the reference.

Answer 1

Outsource Product Development:

The name itself is complete pointing out that the product is developed completely outside or by taking services of the outsiders. It is very useful technique used as a business strategy. The Basis of this technique simply based on the fact that the how much product development process need to be outsourced, by which the quality , quantity not even at a single point anything of them is compromised.

Outsourcing is one of the best suitable business strategy to respond with greater speed in the competitive market and used the already established market players or brand makers to flourish own product at greater pace. Helps to reduce the competition.

The basis of such strategy simply rounds around the capital abundance, product developer are easy to outsource, capital outlay is more rather than outsource. Understanding the competitive market scenario, with the Outsource the company has to develop the process only for meeting the customer needs. Initial Capital is required to funds the outsourcing agency.

With the help of Outsourcing agency requirement of Process buildup, Controls, Flow of process, other associated cost everything can be surpassed and utilized the resources of the agency who already has mastered the product.

With this strategy the reduction of competition can be done as the suppliers are indulge in providing the product to us, Thus provide the basis of charging own pricing , Non – Solicitation contracts, Non – Competent contracts shall also play major role in this kind of strategy in order to mark up the profit from such outsourcing product development.

However, the quality code and delivery code need to be consent by both the party at each and every point which later on not become the point of clash and lead to filing suit for breach of any contract point.

From above it can concluded that outsourcing can be little costlier where markup may be reduced but the capital outflow can be reduced, relying on the phrase or basis of making costing decision “ Money not outflow or money saved, is Money inflow only” Thus with outsourcing able to reduce the initial heavy outsource, Early project/ product delivery, easy to capture the market with high demands, Breakeven can be expected earlier.