The enduring impact of the financial crisis forces more and more businesses to concentrate on their key competences because of dwindling sales. Nevertheless shareholders demand a reasonable reward for their investment in the business, customers expect an equal quality level and staff won’t accept salary cuts. One possible solution to satisfy at least the shareholders and customers is offshore outsourcing of IT/IS-services. Information technology (IT) and information systems (IS) are very complex topics in many cases and cause high costs. During the recession, cost cutting is often the number one strategy to keep the business running and beyond the break-even.
Inhaltsverzeichnis (Table of Contents)
- IT/IS Offshore Outsourcing
- Key risks and success factors
- Financial risks
- Operational risks
- Strategic risks
- Security risks
- Cultural challenge
- Image risk
- Successful outsourcing
- The price of a service
- Tools or methods to reduce the risks
- Risk analysis
- Cost Benefit Analysis
- Risk Control
- Relationship Management (RSM)
- Selection of the service partner and the outsourcing contract
- Summary of risks and success factors
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text examines the risks and success factors associated with IT/IS offshore outsourcing. It explores the potential benefits and drawbacks of outsourcing, particularly in light of the global financial crisis and the changing business landscape. The text also provides practical strategies for mitigating risks and achieving successful outsourcing outcomes.
- Financial risks and cost considerations
- Operational challenges and communication barriers
- Strategic considerations and potential for opportunistic behavior
- Security risks and data privacy concerns
- Cultural differences and their impact on project success
Zusammenfassung der Kapitel (Chapter Summaries)
- The text begins by outlining the rationale for IT/IS offshore outsourcing, citing cost savings and access to specialized expertise as key drivers. It discusses the evolution of offshoring, from its early adoption by large multinational corporations to its increasing relevance for smaller businesses.
- The text delves into various risks associated with offshore outsourcing, including financial risks stemming from unpredictable costs and incomplete contracts, operational risks arising from communication challenges and unclear task definitions, and strategic risks related to opportunistic behavior by service providers.
- The text further examines security risks, highlighting the potential for data breaches and privacy violations, particularly in sectors where customer trust is paramount. Cultural differences are also explored as a potential source of risk, emphasizing the need for effective communication and cultural sensitivity.
- The text then explores strategies for mitigating risks and achieving successful outsourcing outcomes, including thorough risk analysis, cost-benefit analysis, and risk control measures. Relationship management, particularly fostering trust and open communication, is identified as a crucial element for long-term success.
- The text concludes by emphasizing the importance of selecting the right service provider and negotiating a comprehensive contract that safeguards the interests of both parties. It underscores the need for ongoing monitoring and evaluation of service level agreements to ensure that outsourcing objectives are met.
Schlüsselwörter (Keywords)
The main keywords and focus topics of the text include IT/IS offshore outsourcing, risk management, cost savings, communication challenges, security risks, cultural differences, relationship management, service provider selection, and outsourcing contracts.
- Quote paper
- Matthias Siebert (Author), 2010, IT/IS Offshore Outsourcing - Key risks and success factors, Munich, GRIN Verlag, https://www.grin.com/document/154679
