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CHAPTER 8: IT SOURCING : - Coggle Diagram
CHAPTER 8: IT SOURCING
:
DEFINITION
Doing IT work in your own firm or outside it
STRATEGIES
VERIFY-THEN-TRUST APPROACH
CONCURRENT SOURCING
3 times Un-strategic IT sourcing decision
commodity software
Commodity IT infrastructure and services
the business process outsourcing enabled by IT
Different between Insourcing and Outsourcing
INSOURCING
Advantages
identical interest
thwarts imitation
Retain inhouse expertise
Disadvantages
lack inhouse skills
potentially costlier
OUTSOURCING
Advantages
access skills absent inhouse
cheaper for intermittent IT work
Disadvantages
disconnect from business needs
not your employees ever
CHALLENGING IN OUTSOURCING IT
The outsourced system does not play well with existing systems or it will be 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 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 along with the cultural barrier
latent needs create volatile requirements
might get what the IT unit asked for but not what been needed
5 consideration of where to outsource
country profile
skill sets in region
legal sophiscation
time zone
cultural and language differences
STEPS
STEP 3
CODE IT
STEP 4
TEST IT
STEP 2
DESIGN IT
STEP 5
ROLL IT OUT
STEP 1
GATHER REQUIREMENTS