Enterprise and Global Management of Information Technology

1
Enterprise and Global Management of Information
Technology

• Identify each of the three components of
  information technology management.
• Explain how failures in IT management can be
  reduced.
• Identify cultural, political, and geoeconomic
  challenges that confront managers in the
  management of global IT.
• Explain the effect on global business/IT strategy
  of the trend toward a transnational business
  strategy by international business organizations.
• Identify factors that affect the choice of IT
  applications, platforms, data access policies,
  and systems development methods.
• Understand the fundamental concepts of
  outsourcing and offshoring.

2
Components of IT Management
3
Business/IT Planning Process
4
Organizing IT

• Application Development Management
• IS Operations Management
• System Performance Monitors
• IT Staff Planning
• IT Executives
• Chief Information Officer (CIO)
• Chief Technology Officer (CTO)
• Managing User Service

5
Outsourcings Top Ten
6
Senior managements involvement in business/IT
decisions
7
Global IT Management Dimensions
8
Transnational Business/IT strategies
9
Internet Users by World Region
10
Internet-enabled Collaboration in IT Development
Source Adapted from Jon Udell, Leveraging a
Global Advantage, Infoworld, April 21, 2003, p.
35.
11
OUTSOURCING

• Identify the three primary outsourcing options
• Explain the business benefits of outsourcing
• Identify the leading versus up-and-coming versus
  rookie offshore outsourcing countries
• Assess the reasons for developing strategic
  outsourcing partnerships

12
OUTSOURCING DRIVERS

• Factors driving outsourcing growth include
• Growing economy and low unemployment rate
• Technology
• Deregulation
• Core competencies
• Financial savings
• Rapid growth
• Industry changes
• The Internet
• Globalization

13
THE OUTSOURCING PHENOMENON

• Most organizations outsource their noncore
  business functions, such as payroll and IT

14
OUTSOURCING
15
Outsourcing Benefits

• Outsourcing benefits include
• Increased quality and efficiency
• Reduced operating expenses
• Outsourcing non-core processes allows focus on
  core competencies
• Reduced exposure to risk
• Service providers economies of scale, expertise,
  and best practices
• Access to advanced technologies
• Increased flexibility
• Avoid costly outlay of capital funds
• Reduced headcount and associated overhead expense
• Reduced frustrations and expense related to
  hiring/retaining employees
• Reduced time to market for products or services

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OUTSOURCING

• Reasons companies outsource

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OUTSOURCING OPTIONS

• Onshore outsourcing engaging another company
  within the same country for services
• Nearshore outsourcing contracting an
  outsourcing arrangement with a company in a
  nearby country
• Offshore outsourcing using organizations from
  developing countries to write code and develop
  systems

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OFFSHORE OUTSOURCING

• Three categories of outsourcing countries
  leaders, up-and-comers, rookies

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OFFSHORING

• Big selling point for offshore outsourcing
  inexpensive good work

20
Offshore Outsourcing

• The Leaders
• Canada , India, Ireland, Israel, Philippines
• The Up-and Comers
• Brazil, China, Malaysia, Mexico, Russia, South
  Africa
• The Rookies
• Argentina, Chile, Costa Rica, New Zealand,
  Thailand, Ukraine

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THE CHALLENGES OF OUTSOURCING

• Outsourcing challenges include
• Contract length
• Difficulties in getting out of a contract
• Problems in foreseeing future needs
• Problems in reforming an internal IT department
  after the contract is finished
• Competitive edge
• Confidentiality
• Scope definition

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FUTURE OUTSOURCING TRENDS

• Outsourcing is becoming less of a cost-saving
  strategy and more an overall context for business
• Outsourcing is approaching commodity status
• Companies should look for value-based pricing
  rather than the lowest possible price
• Multisourcing a combination of professional
  services, mission-critical support, remote
  management, and hosting services that are offered
  to customers