IT Outsourcing

2011 ◽  
pp. 6-27
Author(s):  
P. Gottschalk
Keyword(s):  
Strategic Planning ◽  
Business Processes ◽  
Lower Cost ◽  
Service Providers ◽  
Senior Management ◽  
Management Teams ◽  
It Outsourcing ◽  
Simple Solution ◽  
It Capabilities ◽  
Contractual Obligations

Given the potential headaches of managing IT, it is tempting to hand the job over to someone else. Indeed, outsourcing once appeared to be a simple solution to management frustrations, and senior management teams at many companies negotiated contracts with large service providers to run their entire IT functions. At a minimum, these providers were often able to provide IT capabilities for a lower cost and with fewer hassles than the companies had been able to themselves. But many of these outsourcing arrangements resulted in dissatisfaction, particularly as a company’s business needs changed. Service providers, with their standard offerings and detailed contracts, provided IT capabilities that were not flexible enough to meet changing requirements, and they often seemed slow to respond to problems. Furthermore, a relationship with a supplier often required substantial investments of money and time, which entrenched that supplier in the company’s strategic planning and business processes. The company then became particularly vulnerable if the supplier failed to meet its contractual obligations (Ross & Weill, 2002).

Dynamics of Outsourcing Relationships

2010 ◽  
pp. 216-230
Author(s):  
Hans Solli-Sæther ◽  
Petter Gottschalk
Keyword(s):  
Business Processes ◽  
Service Providers ◽  
Senior Management ◽  
Simple Solution ◽  
Market Place ◽  
Knowledge Resources ◽  
It Capabilities ◽  
It Resources ◽  
Dynamic Perspective ◽  
Contractual Obligations

Given the potential headaches of managing IT, it is tempting to hand the job over to someone else. Indeed, outsourcing once appeared to be a simple solution to management frustrations, and senior management teams at many companies negotiated contracts with large service providers to run their entire IT functions (Gottschalk & Solli-Sæther, 2006). At a minimum, these providers were often able to provide IT capabilities for a lower cost and with fewer hassles than the companies had been able to themselves. But many of these outsourcing arrangements resulted in dissatisfaction, particularly as a company’s business needs changed. Service providers, with their standard offerings and detailed contracts, provided IT capabilities that were not flexible enough to meet changing requirements, and they often seemed slow to respond to problems. Furthermore, a relationship with a supplier often required substantial investments of money and time, which entrenched that supplier in the company’s strategic planning and business processes. The company then became particularly vulnerable if the supplier failed to meet its contractual obligations (Ross & Weill, 2002). In our dynamic perspective of knowledge resources, outsourcing relationships are not just about transactions between a vendor and a supplier. The resource-based theory argues that the firm’s ability to mobilize and utilize both internal and externally available resources determines its ability to succeed in the market place. If the firm is short of important resources such as IT resources, an outsourcing arrangement might help overcome the problem as the vendor makes IT resources available to the firm for a price.

Offshore IT Outsourcing

2006 ◽  
pp. 200-210
Author(s):  
Petter Gottschalk
Keyword(s):  
20Th Century ◽  
Customer Service ◽  
Business Processes ◽  
Senior Management ◽  
It Outsourcing ◽  
Offshore Outsourcing ◽  
Third Wave ◽  
Order Processing ◽  
The Third ◽  
Second Wave

The shifting geography of business processes can de defined as the third wave of geography-related change in the design and operation of corporations. During the first wave, the improving transportation infrastructure of the 20th century enabled corporations to seek effective production capabilities in increasingly far-flung locations that provided access to new markets and tangible resources — land, local factories, mines, and production workers. During the second wave, as capital markets became global and interconnected in the latter half of the 20th century, corporations began to capitalize on vibrant global financial markets for both debt and equity. Now we are in the midst of a third wave — in which digitized business processes like order processing, billing, customer service, accounts and payroll processing, and design and development can be carried out without regard to physical location (Venkatraman, 2004). According to Kaiser and Hawk (2004), all executives need to explore offshore outsourcing. Competitors’ use, or perceived use, makes evaluation inevitable. Even IT organizations that choose not to use offshore companies must be able to convince their senior management that they have carefully considered the option. Those who do choose to outsource need to decide how they want to work with an offshore organization.

Tight budget constraints and the absence of strategic planning

Facilities ◽  
2016 ◽  
Vol 34 (7/8) ◽  
pp. 380-393 ◽  
Author(s):  
Huiying Hou ◽  
Daniel C.W. Ho ◽  
Jacky K.H. Chung ◽  
Kelwin K.W. Wong
Keyword(s):  
Hong Kong ◽  
Strategic Planning ◽  
Qualitative Data ◽  
Service Providers ◽  
Facilities Management ◽  
Budget Constraints ◽  
Group Discussions ◽  
Service Outsourcing ◽  
Content Type ◽  
Coding Method

Purpose This paper aims to identify the factors that affect facilities management (FM) service outsourcing. Design/methodology/approach Five focus group discussions (FGDs) were conducted for this study. A total of 25 professional FM managers were invited to participate in the FGDs. The qualitative data collected from the FGDs were analysed with the coding method. Findings FM managers commonly regard that tight budget constraints and the absence of strategic planning are two important factors that affect FM service outsourcing. Tight budget constraints reflect that clients control their service providers by constraining budgets, which creates a series of inefficiencies in the outsourcing process and thus lead to adverse outsourcing relationships. A series of strategies are recommended to deal with the challenges posed by budget constraints and the lack strategic planning. Research limitations/implications Twenty-five Hong Kong-based FM managers were interviewed for this study. The empirical data collected mainly reflects FM service outsourcing in Hong Kong. It is important to test the findings with a bigger group of FM managers from other regions. Originality/value The managerial significance of FM service outsourcing has not yet been valued in practice. This study draws academic attention to FM service outsourcing practice and provides practical opinions from FM managers. Also, this study adopts the FGD method in data collection, which extracts to a maximum degree of authentic opinions from practitioners.

scholarly journals Perencanaan Strategi Sistem Dan Teknologi Informasi Pada PT. Microsis

2010 ◽  
Vol 1 (2) ◽  
pp. 629
Author(s):  
Henry Antonius Eka Widjaja
Keyword(s):  
Information Technology ◽  
Strategic Planning ◽  
Organizational Development ◽  
Business Strategy ◽  
Network Architecture ◽  
Business Processes ◽  
Technology System ◽  
Application Architecture ◽  
Information Technology System ◽  
Technology Systems

The purpose of this study is to analyze the company's business processes and make strategic planning and information technology system that is suitable for supporting the goals and vision of the company's mission. The research method is data collection in the form of interviews with the company management and staff, field observations, literature research related to strategic planning and information technology systems. The results of this study prove that the company has a weakness in the implementation of information systems which is not maximized , while the strength of the company has not been fully supported by the use of information technology . This shows that the need for strategic planning and information technology systems to support achievement of business strategy at the company over the next five years. Thus, this research produced a strategic plan in the form of application architecture, hardware architecture, network architecture, organizational development, implementation schedule and cost estimates. 

scholarly journals CLOUD TECHNOLOGIES IN BUSINESS MANAGEMENT

2021 ◽  
Vol 4 (39) ◽  
pp. 294-301
Author(s):  
V. Gevko ◽  
O. Vivchar ◽  
V. Sharko ◽  
О. Radchenko ◽  
M. Budiaiev ◽  
...  
Keyword(s):  
Business Processes ◽  
Service Providers ◽  
De Novo ◽  
Cloud Service ◽  
Jel Classification ◽  
Digital Transformation ◽  
Cloud Services ◽  
Modern World ◽  
High Tech ◽  
Cloud Technologies

Abstract. The modern world is in the phase of active implementation of digitalization of most processes, including cloud technologies, which is also associated with the introduction of quarantine measures in most countries. Over the past decade, the average annual growth of the cloud services market has expanded by about 50% to more than $ 220 billion. This figure is projected to exceed $ 500 billion in the near future. Currently, a large number of cloud service companies are concentrated in the market. All companies can be classified into national, operating within one country, and international, operating in many countries simultaneously. In Ukraine, the leader is the high-tech company De Novo, which provides services in the segment of corporate clients based on VMware, EMC, Microsoft Azure solutions. Competitors are well-known foreign IT giants, namely: Oracle, IBM, Google, Microsoft, Amazon, HP and others. The Ministry of Digital Transformation of Ukraine plays an important role in this area. The latter signed an agreement with Microsoft to implement the Azure Expansion Program and accelerate Ukraine's digital transformation, including the development of Azure cloud services for the sum of more than $ 500 million. The transition from physical, outdated IT technologies to new cloud services will allow companies to significantly reduce the cost of maintaining their own staff of IT professionals and engineers, reduce dependence on IT equipment suppliers and increase productivity and efficiency of the decisions made. The management of the enterprise can choose one of the offered models from the companies-providers: IaaS, PaaS, SaaS. The choice will depend on the immediate management needs and financial capabilities of the enterprise. In Ukraine, the biggest share of users of cloud services belongs to large utility companies and state enterprises, namely: Dija, Ministry of Internal Affairs, Kyiv Municipal Enterprise "Informatics", Prozorro, Ukrposhta, E-Health (National Health Center of Ukraine), Naftogaz and several other organizations. Thus, the introduction of cloud services involves digital business transformations, namely: optimization of business processes, acceleration of innovation, cost reduction and so on. Key words: IT technologies, cloud technologies, cloud service providers, management, business. JEL Classification L86, M15 Formulas: 0; fig.: 1; tabl.: 2; bibl.: 21.

scholarly journals Analysis of Recruitment System and Effective Selection for Front-Line Staff Outsource at Pt Garuda Indonesia (Persero) TBK

2021 ◽  
Vol 8 (5) ◽  
pp. 187-192
Author(s):  
Bobby Pratama Saragih ◽  
Harmein Nasution ◽  
Iskandarini .
Keyword(s):  
Business Processes ◽  
Service Providers ◽  
Front Line ◽  
Transportation Services ◽  
Line Staff ◽  
Effective Selection ◽  
Selection For ◽  
Owned Company ◽  
Recruitment System ◽  
Recruitment And Selection

PT Garuda Indonesia (Persero) TBK is a state-owned company whose business focus is transportation services pax and cargo. In carrying out its business processes, the Garuda Indonesia Company has a cooperation with PT Perdana Perkasa Elastindo (Persaels) in providing outsourced labor for front-line staff. The performance evaluation data of the front-line outsource staff stationed at Garuda Indonesia Medan Branch for the last 3 years (2015, 2016 and 2017), it was found that around 40% of the total front-line staff did not show good performance according to the company's needs. The purpose of this research is to identify the factors exist in the dimensions of the recruitment and selection system that are constraints, and formulate an effective recruitment process design and selection for outsourced front-line staff by outsourced service providers. The requirements of front-line staff met with the company needs as outsourced service users. The data analysis used descriptive qualitative technique. The results of the research on several factors from the existing recruitment and selection dimensions indicate that the factors of Job description, Job Requirements, Sources of recruitment, interview process and consistency in the implementation of the selection test are factors that become obstacles in producing competent outsourced front-line staff according to the needs of the company PT Garuda Indonesia ( Persero) TBK. Keywords: Recruitment system, front-line staff outsource, PT Garuda Indonesia (Persero) TBK.

Architecture of modern platforms for big data analytics

2021 ◽  
pp. 67-74
Author(s):  
Liudmyla Zubyk ◽  
Yaroslav Zubyk
Keyword(s):  
Big Data ◽  
Data Analytics ◽  
Business Processes ◽  
Service Providers ◽  
Big Data Analytics ◽  
Business Value ◽  
Third Party ◽  
Unstructured Data ◽  
Business Decision ◽  
World Industry

Big data is one of modern tools that have impacted the world industry a lot of. It also plays an important role in determining the ways in which businesses and organizations formulate their strategies and policies. However, very limited academic researches has been conducted into forecasting based on big data due to the difficulties in capturing, collecting, handling, and modeling of unstructured data, which is normally characterized by it’s confidential. We define big data in the context of ecosystem for future forecasting in business decision-making. It can be difficult for a single organization to possess all of the necessary capabilities to derive strategic business value from their findings. That’s why different organizations will build, and operate their own analytics ecosystems or tap into existing ones. An analytics ecosystem comprising a symbiosis of data, applications, platforms, talent, partnerships, and third-party service providers lets organizations be more agile and adapt to changing demands. Organizations participating in analytics ecosystems can examine, learn from, and influence not only their own business processes, but those of their partners. Architectures of popular platforms for forecasting based on big data are presented in this issue.

Business Case Development Risks in On and Offshore IT Outsourcing

2012 ◽  
pp. 137-153
Author(s):  
Anne C. Rouse
Keyword(s):  
Business Processes ◽  
Business Case ◽  
Systems Development ◽  
Decision Makers ◽  
Customer Relationship ◽  
It Outsourcing ◽  
Organizational Information ◽  
Business Cases ◽  
Development Risks ◽  
Case Development

Outsourcing of IT-supported business processes (systems development; customer relationship management; helpdesk, etc.) has become increasingly common in Western economies since the late 1990s. Such outsourcing is totally dependent on the provision of inter-organizational information systems (IOSs), which act as the “glue” to link vendor(s) and client(s). Hence understanding the importance of IOSs, and conversely, the downsides or risks they embody, is a critical part of ensuring that outsourcing arrangements are successful. In this chapter the theory behind outsourcing is unpacked, and readers are alerted to sometimes-overlooked aspects of the IOSs on which outsourcing depends. These raise the risks, and reduce the benefits, of outsourcing if they are not well thought through. Decision makers are advised to explicitly include the notion of risk in their outsourcing business cases, including those risks associated with the IOSs that support outsourcing arrangements.

Sign in / Sign up

Export Citation Format

Share Document