12 Aug Outsourcing for innovation is always challenging.

There are several question in the case. IGNORE THEM.

The case is described from the perspective of the vendor. In analyzing this outsourcing scenario, you should evaluate the perspectives of both the client and the vendor.

Only answer the following questions:

1. Outsourcing for innovation is always challenging. Was the client aware of the challenges of outsourcing for innovation? Identify several innovation risks discussed in the case. What steps did the client take to minimize the risks involved in this type of outsourcing? Should the client take additional steps to minimize this risk?
2. Discuss conditions under which an outsourcing vendor prefers a fixed price (FP) contract versus a time & material (T&M) contract? Was the decision of Sasken to sign the FP contract for this project correct? Give specific examples from the case to justify your arguments.
3. Consider this question from the client’s perspective, too. Was the FP contract the right decision for the client? Give specific examples from the case to justify your arguments.
4. Why did the client choose Sasken Technologies to develop the satellite phone? Do you think these were the correct criteria?

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