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IT Sourcing - Coggle Diagram
IT Sourcing
The phenomenon
- Core competence logic that led to wholesale outsourcing
1) Now trifecta had made IT inseparable from firms' offerings
2) IT increasingly defines the following firms
3) Often turned out to be a one-way street
- Perpetual challenges in outsourcing IT
1) Integration problems
2) Receiving the wrong system
- Decisions about whether, how, and where to outsource what IT
1) Must go beyond the outdated insource-outsource dichotomy
- Two innocuous reasons to outsource can create vicious problems
1) To access IT skills absent inhouse
2) Vendor cheaper than doing it inhouse
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Chain of responsibility in IT outsourcing
Ensuring it requires rudimentary appreciation of two things...
1) Formal controls used by IT unit on vendors
-output metrics reward/ penalize vendor for meeting predefined, targets
-process controls dictate methods a vendor should follow
2) CMM ratings (1.5;CMU) ~ eBay ratings; trustworthy but imperfect
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