Why Fabmart Outsources
Fabmart outsources most functions which have no direct bearing on the customer. For instance, hosting is managed by Bharti Telecom, the payment gateway is outsourced to Citibank and networking is in the hands of Wipro and Compaq. According to Vaitheeswaran, Fabmart has identified four areas likely to impact a customer: the brand, the relationships with book and music companies, the store itself, and customer fulfilment.
All other functions are outsourced. Even customer fulfilment, to an extent is managed through outsourcing. Blue Dart delivers goods to 850 points across the country. Similarly, execution of responses to Fabmart’s customers is done through an external eCRM firm. If a portal is compared to a human body, all its parts except the brain can be outsourced, and Fabmart claims to be the brain.
One frequently asked question is how viable is outsourcing. While it is true that Fabmart tends to spend more resources on the outsourcing model, according to Vaitheeswaran, it certainly pays, especially when the time gained is considered. If Fabmart had to develop and execute all the operations by itself, it would not have been possible for the company to make the site functional in six months
Fabmart outsources most functions which have no direct bearing on the customer. For instance, hosting is managed by Bharti Telecom, the payment gateway is outsourced to Citibank and networking is in the hands of Wipro and Compaq. According to Vaitheeswaran, Fabmart has identified four areas likely to impact a customer: the brand, the relationships with book and music companies, the store itself, and customer fulfilment.
All other functions are outsourced. Even customer fulfilment, to an extent is managed through outsourcing. Blue Dart delivers goods to 850 points across the country. Similarly, execution of responses to Fabmart’s customers is done through an external eCRM firm. If a portal is compared to a human body, all its parts except the brain can be outsourced, and Fabmart claims to be the brain.
One frequently asked question is how viable is outsourcing. While it is true that Fabmart tends to spend more resources on the outsourcing model, according to Vaitheeswaran, it certainly pays, especially when the time gained is considered. If Fabmart had to develop and execute all the operations by itself, it would not have been possible for the company to make the site functional in six months