Download presentation
Presentation is loading. Please wait.
1
Outsourcing Issues in outsourcing.
2
Outsourcing What happens in outsourcing?
What the reasons for outsourcing? How do you manage an outsourcing agreement?
3
Outsourcing The purchase of a good or service that was previously provided internally Farm out data center operations (facilities management) Farm out tasks and services Farm out systems development May transfer IS function to vendor
4
Determinants of Outsourcing Success
Core vs. commodity Partner vs. vendor Tight vs. loose contract Success: Economic, Technical, Strategic, Overall Satisfaction with Contract
5
Primary Reasons for Outsourcing
Technological considerations Cost Savings Strategic considerations (infrastructure building - quickly) Human resource considerations Mandated by central office/Acquired by another company Consolidate Data Centers Efficiency Cash Infusion
6
Aha! Need tight contracts
May be successful for core functions… especially if linked to tight contract Can have successful partnerships
7
Outsourcing Disadvantages
Reliance on vendor/partner Loss of control Considerations about security/confidentiality Evaporation of cost savings Loss of competitive advantage Slight of hand with employees
8
Outsourcing strategies
9
Outsourcing strategies
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.