Question # 1: Auratek Company had experiences with outsourcing to cut cost in fabricating data storage devices. The aim of all this was to improve quality and decrease in the development and fabrication process which will decrease the after-sales support. The company estimated that the cost savings could achieve approximately $ 2 million annually due to reduced cost of engineering in India. In Auratek Company we can see a turnaround and transformational change that was made to cut cost for a period of time with a change in creating the verification Group.K-PUB Company is an electronic publishing company.
It targets information technology professionals with both printed and online material. Doing all the efforts to reduce the cost of translating a book, like enhancing software conversion tools, did not work. The solution was to outsource the translation which will cut the cost but will take more time. This outsourcing process was planned to be done for few years only. This deals with tools and techniques changes which lead to a successful decision making and to good revenues.
Question # 2: Auratek Company went to outsourcing to improve the quality and to decrease the cost and time in the fabrication process but it did not think about the quality assurance of the product produced while outsourcing this process. And the time zone that cause conflicts in communication between the two countries. Also the skills of the engineers while outsourcing were not up to the level needed. All this lead to disastrous results like delay in product release and many defects.K-PUB Company went to outsourcing in India to reduce the cost of translating a book and although the process in translating will take more time but it succeeded because it has chosen the right the company to perform the task outsourced. So cutting the cost of translation while keeping on the quality and the meaning of the text was successful in the outsourcing process that K-PUB Company did.
