Implementing Strategic Sourcing Assignment Example | Topics and Well Written Essays - 750 words

Implementing Strategic Sourcing - Assignment Example The C&C Company outsourced its Human Resource functions to a US based company XperTrans. However, the client did not get what they wanted by outsourcing their HR functions because of the inability of the supplier to undertake the contract. The escalation of commitment to the IT enabled HR business project occurred because the client was not in any position to meet the requirements of the tender. In fact, the supplier, XperTrans was only 10% into the Human Resource Outsourcing business, meaning that they only took this contract as a way of expanding their business strategy. In addition, the big client that the company netted through this contract was another way of creating a reputable brand image for the supplier, especially in the field of HRO The failure of the contract began by the lack of incorporation of the operations department in drafting the contract. The XperTrans left the whole project in the hands of the sales department, which only talked big in order to please the client, but did not consider the ability of the operations department in rolling out the contract. Furthermore, company used a US based software program to undertake all its HRO solutions in all the countries which the client had subsidiaries. This was a wrong move, as the program does not work similarly across all countries due to the specific differences in laws and legal procedures of each EMEA region. As such, it was impossible for the supplier to consolidate all its services, especially the payrolls of all the employees. The ambitious nature of this contract is what led to is massive failure.