D10346961 & Chenghao Bai
IT Infrastructure Outsourcing at Schaeffer (B): Managing the Contract
ITM R 6:00pm-10:00pm FALL 2014
Date: 12/11/2014
INTRODUCTION
Background of Schaeffer:
In 1877, Schaeffer was founded by Fredrick W. Schaeffer.
The company has three different divisions which running by different son-in-laws. They
are Colbert, Reitzel, and Kinzer.
In 2002, the annual sales achieved $2 billion dollars.
Colbert and Reizel are selling their products with their own plants and facilities, while
Kinzer only provide financial services.
Colbert and Kinzer are running their business only in the United States. Reizel’s business
growing fast and expanding to other countries.
In the past, these three different divisions running their own IT infrastructure separately.
In 1990s, Schaeffer consolidated and centralized IT infrastructure operations for the
whole company.
Contract with ABC:
In 2003, Schaeffer signed an outsourcing contract with ABC Corporation. The main
purpose to sign that contract is to support the business strategy which was aggressive growth
