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Managing IT outsourcing - Essay Example

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Author : dgleason


IT outsourcing is gaining importance in the business world, especially as businesses begin to work on a multi-national level that transcends geographic boundaries. This means that there is some importance in understanding the components that make IT outsourcing work…

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Managing IT outsourcing

The following is an overview of managing the IT outsourcing relationship, which includes the business process of outsourcing, the tools and resources, understanding the cost and return on investment. Furthermore, there will be some examples of risk management and data security, as well as a look at the dimensions of relationship management and its importance.Business Process Outsourcing is best explained by Medas Company, an outsourcing management consultant. Their document, A Practical Guide to Business Process Outsourcing (2006) gives straightforward information on the actual process of Managing IT Outsourcing. The following matrix (Medas 2006) shows the services and steps in functional IT management outsourcing:Medas (2006) states that first, it is important for the manager to identify the organisation's needs as the scope of activities, the reasons for outsourcing, and how this will impact or change the business model. This includes understanding the current organisational structure, the IT system infrastructure including the team members functional roles and the systems that support them. Medas notes that the current volume of transactions being internally processes must be examined. Once the current functionality and organisation's objectives for outsourcing have been established, Medas states that the next step is to choose an outsourcing partner:"the Outsourcing partner's people need to fully understand the organisation's needs. ...
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