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CHAPTER 8: IT SOURCING, IT SOURCING - Coggle Diagram
CHAPTER 8:
IT SOURCING
IT SOURCING
Routine non strategic activities
2. Commodity IT insfrastructure and services
3. Commodity software
software embedded
custom built apps
one off, non-recurring IT tasks
1. Business process outsourcing enabled by IT
customers support, call centers, remote workers, crowdsourcing
Chain of Responsibility in IT Outsourcing
Format controls used by IT unit on vendors
output metrics reward vendor for meeting predefined
process controls dictate methods a vendor should follow
CMM ratings
Where to outsource?
Country profile
Cultural
Skill sets
Legal sophistication
Time zone
Lowering Integration Costs: 2x Strategies
Avoiding the wrong systems
Match requirements ambiguity with contract choice
flexible but greater cost variability
lean towards T&M when project requirements ambigious
Predictable but inflexible
Tapered Outsourcing
2.Verify then trust approach
screening using dummy projects
Concurrent sourcing
prevents outsourcing from being irreversible
helps write better contracts and better specifications
fosters healthy competition between inhouse IT and vendors
Challenges in Outsourcing IT
Integration problems
Patchwork of inhouse systems, spanning generations
Often uses or sends data
Must play well with IT asset
Actual costs can wipe out obvious savings
Receiving the wrong system
Outsourcing adds extra translator layer between users and vendor
Double whammy
Latent needs create volatile requirements
Might get what IT unit asked but not what is needed