LeMar Outdoor Play Products, Ltd.: An Outsourcing Decision to India
This case, based on general business experience, casts students in the role of analyzing the financial effects of a possible outsourcing decision. Lee and Marcia Mills, owners of LeMar Outdoor Play Products, Ltd. (LOPP), a Canadian company that designs, manufactures, and installs outdoor play equipment, are faced with a decision pertaining to whether LOPP should outsource the company's back-office information technology enabled services (IT-ES) functions. Lee engages with an outside advisory firm specializing in matching companies with suitable outsourcing partners in India, and eventually a contract is presented. From just a financial perspective, students must ascertain whether Lee and Marcia should accept the outsourcing offer.