Please enable JavaScript.
Coggle requires JavaScript to display documents.
IT SOURCING, DEFINITION, CHALLENGING IN OUTSOURCING IT, Avoiding the Wrong…
IT SOURCING
5 Considerations of Where to Outsource
Skill sets in region
Country profile
Time zone
Cultural and language differences
Legal sophistication
3 times Unstrategic IT Sourcing Decisions
Commodity IT infrastructure and services
Commodity software
Business process outsourcing enabled by IT
The outsourced system does not play well with existing
systems or you end up with an unwanted system
Integration problems where 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
Latent needs create volatile requirements
Outsourcing adds extra translator layer between users and vendor
Double whammy: Business-IT chasm + cultural barrier
Might get what your IT unit asked for but not what you needed
Different between Insourcing and Outsourcing
INSOURCING
Advantages
Retains inhouse expertise
Thwarts imitation
Identical interests
Disadvantages
Lack of inhouse skills
Potentially costlier
OUTSOURCING
Advantages
Access skills absent inhouse
Cheaper for intermittent IT work
Disadvantages
Not your employees, ever
Disconnect from business needs
2 times Strategies
Concurrent sourcing
Verify-then-trust approach
with folllow this stage
Gather
requirements
Design it
Code it
Test it
Roll it out
Doing IT work in your own firm or outside it
DEFINITION
CHALLENGING IN OUTSOURCING IT
Avoiding the Wrong System
Lowering Integration Costs
STEP 1
STEP 2
Japanese
approach
American
approach