Casestudy On It Development Outsource

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this is based on a hypothetical case study to analyze an IT system development outsourcing project approach. the client is a health care institute in UK

this is based on a hypothetical case study to analyze an IT system development outsourcing project approach. the client is a health care institute in UK

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  • 1. IT system development Outsourcing Proposal and Recommendation for Ingleburn Health Clinic
  • 2. Overview 29/03/10 Keele University: IT&Mgt 2009/10 Group 1
    • The task and scope
    • Types of outsourcing
    • What type we recommend
    • Ingleburn readiness
    • Outsource process
    • Vendor selection
    • Typical costs
    • The risks
    • Quality aspects
    • Summary and our conclusion
    • References
    • Questions and answers
  • 3. The Task and Scope
    • Recommending the outsourcing approach that Ingleburn needs to follow
      • Onshore and why?
    • Processes related to the selected onshore outsourcing
    • Important concerns relating to these processes
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 4. Types of Outsourcing
    • Onshore
    • - Onshore outsourcing is also called as domestic outsourcing, which consists of both domestic vendors and domestic clients. Which means that both (vendor and client) organizations are located in same country.
    • Offshore
    • -the vender is overseas
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1 Hirschheim,R., Heinzl, A., & Dibbern, J. (2006)
  • 5.
    • We recommend onshore outsourcing
      • To avoid possible risks such as:
        • 1. Offshore outsourcing hidden costs
        • 2. Deficiency arising due to cultural differences
        • 3. Communication / coordination complexity
        • 4. Legal and data privacy issues with countries
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1 What Type We Recommend
  • 6. Ingleburn Readiness
    • Things to do:
    • Clear understanding of the goals, objective scope of outsourcing project.
    • Select a reputable vendor.
    • Vivid communication of requirements to vendor.
    • Good open Communication.
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 7. Ingleburn Readiness
    • Contract negotiation and signing.
    • Proper top management support.
    • Good project management expertise.
    • Management of user expectations.
    • Adequate user involvement.
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 8. Outsource Process
    • Strategic Evaluation
    • Contractual Completeness
    • Relationship Management
    • Outsourcing Performance
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 9. Vendor Selection
    • Vendor selection problems
    • price, quality, prestige-service
    • General methods of vendor selection
      • Total cost approach, Total cost of ownership, Analytic hierarchy process
    • For the case
    • medical knowledge
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 10. Typical Costs
    • The hidden costs
      • They are not negligible
    • Includes:
      • Finding the vendor
      • Drafting the contracts
      • Managing the efforts
    • Understand what goes into the cost and when to expect them
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
    • Barthe´lemy, J. (2001)
  • 11. The Risks
    • Original set of requirements is miscommunicated
    • Failure to manage end-user expectations
    • Lack of project management
    • Inadequate user involvement
    • Lack of top management support
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 12. Quality Aspects
    • Well documented Manuals & coding standards.
    • Software reliability and correctness
    • Completeness
    • Efficiency
    • Usability
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 13. Summary and Our Conclusion
    • Go with onshore outsourcing to avoid unnecessary risks
    • Prepare properly for outsourcing so as to:
      • Be prepared for the costs
      • Minimise risks and
      • Quality product with requirements met
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 14. References
    • Barthe´lemy, J. (2001), “The hidden cost of IT outsourcing”, MIT Sloan Management Review, Vol. 42 No. 3, pp. 60-9.
    • Chou, D.C. & Chou, A.Y. (2009), "Information systems outsourcing life cycle and risks analysis", Computer Standards & Interfaces, vol. 31, no. 5, pp. 1036-1043. •
    • Hirschheim,R., Heinzl, A., & Dibbern, J. (2006) The Maturation of Offshore Sourcing of Information Technology Work, Springer Berlin Heidelberg
    • Gonzalez, R, Jose Gasco and Juan Llopis (2006) Information systems offshore outsourcing A descriptive analysis Department of Business Organisation, University of Alicante, Alicante, Spain
    • Kuipers, Joost Visser, Gerjon de Vries (2008), Monitoring the Quality of Outsourced Software Tobias •
    • Nakatsu, R.T. & Iacovou, C.L. (2009), "A comparative study of important risk factors involved in offshore and domestic outsourcing of software development projects: A two-panel Delphi study", Information & Management, vol. 46, no. 1, pp. 57-68.
    • Sean M. Handley a, W.C. Benton Jr.b, (2009) Unlocking the business outsourcing process model
    • Tafti H.A. (2005) Risks factors associated with offshore IT outsourcing Mohammed
    • Vijay Wadhwa, A. Ravi Ravindran (2007) ,Vendor selection in outsourcing. Computers & Operations Research 34 3725 – 3737.
    • Willcocksa, L.P. , Lacityb, M.C. Kernc., T. (1999), Risk mitigation in IT outsourcing strategy revisited: longitudinal case research at LISA
    29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 15. Any Questions ? 29/03/10 Keele University: IT&Mgt 2009/10 Group 1
  • 16. 29/03/10 Keele University: IT&Mgt 2009/10 Group 1 Thank you !