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IT SOURCING - Coggle Diagram
IT SOURCING
Lowering Integration Costs: 2x Strategies
Concurrent sourcing
Verify-then-trust approach
5 Considerations of Where to Outsource
Country profile
Cultural and language
Skill sets
Legal sophistication:
Time zone
Avoiding the Wrong System: 2x Strategies
Tapered Outsourcing
Match Requirements Ambiguity with Contract Choice
The Phenomenon
Perpetual challenges in outsourcing IT
Integration problems
Receiving the wrong system
Two innocuous reasons to outsource can create vicious problems
To access IT skills absent inhouse
Vendor cheaper than doing it inhouse
Core competence logic
3x Unstrategic IT Sourcing Decisions
Commodity IT infrastructure and services
Commodity software
Business process outsourcing enabled by IT
Two Challenges in Outsourcing IT
Integration problems - the pieces don’t fit
Patchwork of inhouse systems, spanning generations
Often uses or sends data to them
Must play well with your other IT assets
Actual costs can wipe out obvious savings
Receiving the wrong system
Outsourcing adds extra translator layer between users and vendor
Double whammy: Business-IT chasm + cultural barrier
Latent needs create volatile requirements
Might get what your IT unit asked for but not what you needed