Session 7 - Outsourcing

Question 1

Concept

Answer 1

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

Question 2

What to outsource?

Answer 2

Jobs that

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

Question 3

Why outsourcing IT?

Answer 3

• 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)

Question 4

Why not outsourcing IT?

Answer 4

• 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

Question 5

Hidden costs and how to reduce them

Answer 5

• 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

Question 6

Outsourcing models

Answer 6

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)

• …?

Question 7

IT Offshoring