Session 7 - Outsourcing Flashcards

1
Q

Concept

A

On commissione un tiers parti pour s’occuper de notre IT.

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2
Q

What to outsource?

A

Jobs that

  • can be well described and standardized
  • don’t demand physical presence
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3
Q

Why outsourcing IT?

A
  • Financial optimization (reduce costs)
  • Refocus on core business
  • Partnership with an IT specialist
  • Flexibility of IS/IT (pay only what is consumed)
  • Control over the quality (contract)
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4
Q

Why not outsourcing IT?

A
  • Loss of control over critical aspects of the enterprise
  • Outsourcing decisions difficult to reverse
  • Providers may not have latest technology
  • Hinder the potential to develop innovation with IT
  • High dependence
  • Problems with confidentiality and security
  • Cost savings may never happen
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5
Q

Hidden costs and how to reduce them

A
  • Choose activities that are safe to outsource
  • Spend some time researching vendors
  • Hire people witth outsourcing experience
  • Draft tight contracts
  • Cultivate the vendor relationship
  • Keep the key IT in house
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6
Q

Outsourcing models

A

Classic model

  • outsource only things that don’t provide competitive advantage

Full/pure model

  • outsource more than 80% of a fct

Selective model

  • outsource all fcts to best available providers

Using Application Service Providers (ASPs)

  • …?
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7
Q

IT Offshoring

A
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