Please enable JavaScript.
Coggle requires JavaScript to display documents.
IT Sourcing - Coggle Diagram
IT Sourcing
Five things to consider if projects are placed offshore
time zone
skill set
profile
culture
legal sophistication
What?
refers to where – in your own firm or outside – are your IT assets developed and maintained
for some companies’ one-way street that left them unable to bring it back in-house
Advantages
natural alignment of interests
retaining of skills inside the firm
better protection of intellectual property
Disadvantages
may not have all the skills
costs of doing it inside could be higher
Two perpetual problems
Integration costs
the pieces don’t fit
must play well with your other IT assets
Receiving the wrong system
Strategies to lower integration costs in IT outsourcing
concurrent IT sourcing
the practice of simultaneously insourcing and outsourcing the same sort of IT projects
three lessons for IT outsourcing decisions
do not underestimate integration costs
do not outsource design
do not outsource what you have never done yourself
adopting a verify-then-trust approach toward vendors
Two things when thinking about decision to insource or outsource
how mission critical task is
ideal profile for outsource
precise
stable requirements
labor intense
does it bring any competitive differentiation
if it is not
outsource it
it is not mission critical
Structure
IT Sourcing
Insourcing
IT unit
Captive center
Foreign
Rural
Concurrent sourcing
Outsourcing
Domestic
Cloud source
Multi-source
Offshore
Multi-source
Tapered outsourcing
Community
Open source
Crowd source
Ecosystem
Concurrent sourcing