1 / 12

When to outsource?

Managing IT and e-Business - 2001. When to outsource?. Pam Conley Greg Jerome Mathew Joseph Stellan Ohrn Enio Pagani Arnon Sela. Agenda. Definition and terms Benefits Costs Risks Recommendations Source of information. Definition.

herne
Télécharger la présentation

When to outsource?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing IT and e-Business - 2001 When to outsource? Pam Conley Greg Jerome Mathew Joseph Stellan Ohrn Enio Pagani Arnon Sela

  2. Agenda • Definition and terms • Benefits • Costs • Risks • Recommendations • Source of information EMBA 2001, 0153

  3. Definition Outsourcing is when a buyer transfers an ownership of process to a supplier EMBA 2001, 0153

  4. Terms • Contracting – operation without ownership • BPO - business process outsourcing • ASP – application service provider • BSP – business service provider EMBA 2001, 0153

  5. Benefits • Economy of scale • Management - competencies focus • Flexible resources • Superior worldwide expertise • Time to market and reduced cycle time EMBA 2001, 0153

  6. Costs • Switching costs • Abdication of control • Lack of customization • Lack of technology innovation • Loss of differentiation EMBA 2001, 0153

  7. Risks • Shirking • Poaching • Opportunistic re-pricing or holdup EMBA 2001, 0153

  8. Recommendations Outsourcing of a function is desired when • It is a non-core competent of the buyer, • There is a supplier that can economically service that function, and • The supplier is trustworthy for delivering in a satisfactory manner. EMBA 2001, 0153

  9. Recommendations (cont.) • Shop around • Start gradually with non-critical function • Short term contract • Clear and manageable scope • “Don’t expect what you don’t inspect” EMBA 2001, 0153

  10. Recommendations (cont.) • Gain-sharing style • Mutual executive supervision • Cross functional teams • Best of breed EMBA 2001, 0153

  11. Source of information • http://www.cio.com/forums/outsourcing • http://www.itworld.com • http://www.outsourcing-center.com • http://www.gartnergroup.com • http://www.computerworld.com • http://www.outsourcing.com EMBA 2001, 0153

  12. Managing IT and e-Business - 2001 When to outsource? The End

More Related