IT utsurcing Essay Example | Topics and Well Written Essays - 3000 words

IT utsurcing - Essay Example Th rsrch bjctivs r t msur th incidnc f utsurcing mng ustrlin firms, idntify th functins utsurcd, th rsns why mngrs cnsidrd utsurcing, th csts nd bnfits f utsurcing, pssibl chngs in mds f nd mtivtins fr utsurcing nd fctrs tht r sscitd with succssful utsurcing rrngmnts. Th ppr is structurd s tht bth thrticl pprch twrd IT utsurcing nd its bnfits nd prcticl implictin nd rcmmndtins fr ustrlin IT utsurcing prtins wr xplrd. Th trms utsurcing nd insurcing d nt cptur th cmplxity f surcing ptins vilbl n th mrkt plc. Thr r svrl txnmis f surcing dcisins tht hv bn dptd. ur rsrch distinguishs mng thr: Ttl utsurcing: th dcisin t trnsfr IS ssts, lss, stff, nd mngmnt rspnsibility fr dlivry f IS srvics frm n intrnl IS functin t singl third prty vndr which rprsnts mr thn 80 pr cnt f th IS budgt; Ttl Insurcing: th dcisin t rtin th mngmnt nd prvisin f mr thn 80 pr cnt f th IS budgt intrnlly ftr vluting th IS srvics mrkt; Slctiv Surcing: th dcisin t surc slctd IS functins frm xtrnl prvidr(s) whil still prviding btwn 20 pr cnt nd 80 pr cnt f th IS budgt intrnlly. This strtgy my includ singl r multipl vndrs (mbrsi, 2001). Trnsitinl utsurcing invlvs th migrtin frm n tchnlgicl pltfrm t nthr. Such trnsitinl utsurcing hs thr phss: ( ) mngmnt f th lgcy systms; ( b ) trnsitin t th nw tchnlgy/systm; nd ( c ) stbilistin nd mngmnt f th nw pltfrm. ny n r ll f ths thr phss culd b turnd vr t third prty prvidr. Businss prcss utsurcing i... ny n r ll f ths thr phss culd b turnd vr t third prty prvidr. Businss prcss utsurcing is rltivly nw utsurcing rrngmnt. It rfrs t n utsurcing rltinship whr third prty prvidr is rspnsibl fr prfrming n ntir businss functin fr th clint rgnistin. ccrding t Millr (1994), numbr f industris r cnsidring businss prcssing utsurcing; in prticulr, gvrnmnt, finncil srvics (bnks nd insurnc cmpnis), hlth cr, trnsprttin, nd lgistics. Trgtd srvics includ htlins, hlp dsks, cll cntrs, clims mngmnt, nd dcumnt prcssing. Businss bnfit cntrcting is ls rltivly rcnt phnmnn. It rfrs t 'cntrctul grmnt tht dfins th vndr's cntributin t th clint in trms f spcific bnfits t th businss nd dfins th pymnt th custmr will mk bsd upn th vndr's bility t dlivr ths bnfits. Th gl is t mtch ctul csts with ctul bnfits nd t shr th risks.' Givn th risks sscitd with trditinl utsurcing, thr is cnsidrbl intrst in this frm f utsurcing. Millr nts, hwvr, tht whil businss bnfit cntrcting is frquntly usd in th mrkting f utsurcing srvics by third prty prvidrs, it typiclly is nt ctully dptd bcus f th difficulty sscitd with msuring bnfits. Bnchmrking in this r is prticulrly prblmtic. Bcus vndr rvnu nd mrgin ptntil r dirctly tid t th bnchmrks, it is nt surprising tht gtting grmnt by bth prtis n th bnchmrks prvs spcilly thrny. In ustrli, ppulr discussin f th grwing mrkt in utsurcing infrmtin tchnlgy (IT) hs bn spurrd by dcisins f svrl lrg cmpnis nd th ustrlin gvrnmnt t utsurc IT prtins. Th srvics in ustrlin IT utsurcing mk up t 38 prcnt f th ttl IT mrkt. Rsrch grup Grtnr rprtd tht th ustrlin IT srvics mrkt is wrth US$5.5 billin (Hubr, 2002). Th utsurcing in th cuntry is still ky drivr f th IT srvics sctr s wll s mngd srvics in rs