Abstract
The impacts to Semiconductor Equipment Suppliers are tremendous under uncertain business cycle. It’s not only because of significant falling in revenue but also human resources arrangement. Thus Enterprises are used to reducing cost by cutting headcount as the only solution rather than finding a way out to further achieve both cost reduction and workload balance. In fact, this impacts Enterprises’ reputation and becomes an obstacle of recruiting especially when business is going upturn. Nevertheless, how to leverage or balance among human resource planning, cost saving, quality of service and customer satisfaction are the first priority while making decisions of outsourcing strategies. Successful outsourcing strategies comprise value proposition besides cost reduction to both Enterprise and customer. However, most of existing outsourcing is mistakenly on reducing Enterprise spending rather than bring addition benefits to support customer value proposition and enterprises’ core value. These implications to Executive teams are crucial. It has to be reconsidered right approaches of outsourcing strategy by dimensions of service innovation aspect to design strategic outsourcing and capability of managing service innovation to expand border scale in customer service further. Strategic outsourcing must involve comprehensive plans, such as, value proposition of Enterprise and Customer, Structures, Technical skills, Customer interactions, Learning, Adapting, Business partners, Organization, Profit models and Culture. In addition to above, the Vendor Relationship Management of outsourcing is relatively important to sustain outsourcing strategies for business growth.