Globshop should continue their outsourcing operations. In terms of their current outsourcing initiate the many problems that were identified for Globshop includes handling of people changes, knowledge transfers, IT leadership, maintaining of vendor relationships and onshore/offshore management structures. Globshop could continue their existing outracing relationship but should make sure these issues are handled. Firstly, it was identified that change management issues existed when doing the initial outsourcing attempt. If Globshop decides to continue its agreement with the Indian unit, then it is necessary for Globshop to focus on some specific issues which it encountered before. Knowledge transfer might no longer be an issue as these companies have been working together for three years, but continuous professional improvement and dedication to quality must be shown by the Indian team. Globshop could sing a shorter agreement like a year, and this could ensure quality is always in the mind of the offshore units. According to Aggarwal and Sambamurthy (2002), innovation is co-created as partners work together. Globshop should indeed share some of its critical projects with ISS and both should be able to bring innovation creativity and efficiency to the workplace.
More service providers must be brought in the long run. The company worries about training and support costs, but the overall advantages are higher in the long run. A set of criteria such as the ones proposed by Cullen et al. (2005) would be helpful to establish the needed quality in each of these bases. Better control of quality and costs could be achieved, as each of the offshore team can be pitted of one another. A competitive quality initiative could be entered into in this fashion.
Outsourcing the entire IT function would not be feasible for the company at this point, as it is still negotiating terms with only one of its existing partners. It should outsource and learn by outsourcing before it decides to take on more partners and this is recommended as the more stable approach for the company.