None of which she expected (Turner, 2003). This paper will discuss whether the decision to outsource IT makes sense and whether it would meet the Porter Value Chain Model.
Hoppszallern (2009) discusses the fact that according to her research savings for the average company through supply chain management that includes the process of outsourcing IT can be $50-100 million over the life of the project. In a clinical situation this includes such things as the business process areas of medical records, billing, revenue cycle, and supply chain. The process of outsourcing not only reduces cost for the business but also provides accountability from the CIO, provides a change agent that is not bogged down by day to day, and objectivity by lack of close involvement with the departments. It also provides a larger base of knowledge over IT software as well as hardware. However, there is also a down side. That includes the fact that the IT director is also not loyal to the business, he may be a poor cultural fit, and he is not a peer at the executive level. There is also a great chance that the outsourcing will end up abroad and this brings up Senator Turners largest complaint is that the business of the US does not belong abroad and available for misuse (Turner, 2003).
Many of the complaints from departments about outsourcing are related. ...Show more