Reference no: EM131984622

These managers therefore suggested that if it is so important that IT support for Reitzel be outsourced, then this should be done to outsource Reitzel's part of the data center, the network, and the phone system, and leave the rest of the Corporation's support as it is the reason being that this would have the added benefit of maintaining a nucleus of IT professionals within Schaeffer who were very much qualified and loyal to the Corporation so that if the outsourcing deal does not work out as they were anticipating then there would be something to build on incase the corporation see the need to bring it back in house for Reitzel.

This was a tactical move by these managers who despite being skeptical of this outsourcing proposal gave room for it but in a smaller scale to act as a pilot test for Schaffer Corporation. Besides if this idea proves beneficial as opposed to their negative attitude towards outsourcing then they still did not lose but could therefore encourage other division to join in faces. This move was very much thought out and very much the best option to go for. It proves very secure cost effective and stress free.

Going by this deliberations in my honest opinion, Schaffer should therefore chose the third alternative given that if it chooses the first option it risks losing big since it may in the long run kill the morale of its workforce which may force others to flee the company given that this will touch on their job security and no one likes that. Besides, Schaffer Corporation will incur cost without any benefit to other branches but most importantly Schaffer can use this alternative as a case study for the entire Corporation to test possible outcomes incase of outsourcing. This option is the best that can let the Corporation try to achieve its ambitious programs of going global while at the same time counting on its loyal workforce incase a problem arises in the cause of this project.

Please paraphrase it.