Spc Products Company

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SPC Products Company

Brief Summary of SPC Company

Son pan products company (SPC) is a leading Japanese company specialising in providing automating solutions for financial, insurance and manufacturing solutions. SPC also produces PC's, mid range computers and peripherals for the Japanese Market. SPC is well known in the Japanese Market as a software producer of very high quality. Due to Son pan's large range of hardware, software and networking solutions, it is also one of the largest systems in Japan. Due to the pressure to cut costs SPC has been looking to outsource software development for lower prices.

SLIDE CHANGE

Brief Summary of case:
Lakshmi Software:
Lakshmi software is a company with their headquarters in India. …show more content…

Their customer tells them they need 60 more engineers to undertake the project and threatens Lakshmi by telling them that if they do not execute the project they will never be given another project to work on. Lakshmi agrees to the requirements.

SLIDE CHANGE:

Over the next month Lakshmi finds that more manpower is required as in some cases they do not have the skills required, further the translation of the documents needed to understand requirements of the project was minimised to only the ‘relevant' pages. Lakshmi also finds that a lot of time is needed in order to ensure that all communication is in Japanese. After much consideration Lakshmi finally comes to their estimation of the project cost and their project manager fears that the productivity figures are not realistic, the translation efforts have been underestimated and some of the software components have not been considered at all.

SLIDE CHANGE

The proposal:
Lakshmi's finally quote to KOS and IPT is USD 600 000
KOS and IPT are ‘shocked beyond words"

Post Proposal:
IPT asks for the details on how the price was arrived at? There are great arguments over who should be paying for what? IPT is very unhappy with the costs and feels they should not have to pay for Translation costs as this would not normally be necessary.

Project execution:
The project starts with a 25 engineer team and KOS and IPT send one

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