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