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CHAPTER 8 : IT SOURCING - Coggle Diagram
CHAPTER 8 : IT SOURCING
Two perpetual challenges in outsourcing IT
Integration problems
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 notwhat you needed
Receiving the wrong system
Must play well withyour other IT assets
Patchwork of inhouse systems, spanning generations
Often uses or sends data to them
Actual costs can wipe out obvious savings
Two Strategies
Avoiding the wrong system
Match requirements ambiguity with contract choice
Tapered outsourcing
Lowering integration costs
Concurrent sourcing
Simultaneously insourcing and outsourcing the same sort of IT work
Verify then trust approach
Japanese style screening using dummy projects
What should never be outsourced
Mission criticality and differentiation potential
Interaction intensity and labor intensity
Three Unstrategic IT sourcing decisions
Business process outsourcing enabled by IT
Commodity IT infrastructure and services
Commodity software
Chain of responsibility
Formal controls used by unit on vendors
-CMM rantings (1-5; CMU) eBay ratings