Nissan Juke

There are many crossover vehicles on the market that are reasonably priced but what makes the Nissan Juke stand out is its unique look. Its appearance is a bit polarizing; some car fans love it on sight while others find it bizarre looking. However, one thing is certain; this is a car that begs to be noticed. It sports distinct looking swooping curves and has an almost cartoon-like appearance. The base model is competitively priced in the $22k range.

A four cylinder 1.6 Liter with 188 hp powers the Juke. This may not sound like a substantial amount of power but it's more than enough for an everyday car. You can select from three different driving modes; Eco which saves gas, Sport which offers a bit more power and Normal mode. Gas mileage stands at 27 mpg in the city and 32 mpg on the highway. There are two transmission options; a six speed automatic and a CVT plus you can select from all-wheel drive or front-wheel drive. One drawback is that this vehicle requires expensive premium gas at the pump. However, it offers excellent handling and precise steering; it easily zips in and out of traffic due to its compact size.

Nissan engineers have installed a large number of safety mechanisms. Top safety features include an intuitive air bag system with dual front, side curtain and front side impact bags. The Anti-Lock Brake System helps to maintain vehicle control and the Traction Control System works to apply pressure to the brakes as necessary during critical moments. Vehicle Dynamic Control is standard and there is a built-in alarm system in order to deter theft.

Nissan

In the year, prior to the turn of the millennium, Nissan was a company in a serious financial crisis. Debt had approached $22 billion by 1999. The company had been too complacent, and had taken its prior success, for granted [2].

Did Nissan's decision to outsource their IT Infrastructure to IBM in 1999 make good sense? Nissan was a very troubled auto-manufacturer in the late 1990's. Senior executives from the company were known for their conservative outlook on business, and their 'old boy's network,' mentality. Profits were dropping dramatically, eventually forcing the company into the $22 Billion debt that it then faced. There were no signs indicating a change in the market that would encourage profit growth. The vehicle sales needed invigoration.

Mergers were the flavor of the day in the automotive industry during the late 1990's. Nissan executives approached Daimler Chrysler and Ford to discuss a possible merger, but there was no interest from either of the companies [2]. There was only one alternative left, which was to reinvent themselves and reduce unnecessary overheads. This was the defining point that led to the business process outsourcing decision.

This paper seeks to answer the question "Does the cost of implementing an in-house solution outweigh the benefits or does Business Process Outsourcing (BPO) make more sense?" We reviewed the example of the automotive manufacturer, Nissan, when they decided to outsource their entire Information Technology department to IBM in late 1999, to answer our question.