Their experiences with outsourcing have been bitter and they are on the lookup for better strategies for managing their IT infrastructure. In addition to that, backsourcing did not do much good. It stirred dissatisfaction among employees and senior management.
Information strategy for any organisation is purely based on their requirements to manage business and envelope operations into a system which would in turn effectively manage their resources and yield not only profits in the long run but satisfaction to its employees and customers. (Laudon, 2002)
The detailed company analysis of the issues it is facing has been discussed vividly. The employees have been mismanaged and to a great extent their morale and satisfaction has eroded in the process of outsourcing and backsourcing.
A close study of the information systems strategy has been made and various methods have been evaluated for the betterment of the firm. The success of the IT strategy would be among the employees or users of the system as they are the people who live with the technology for getting the job done.
Finally, evaluation of the new proposed information systems strategy is done so that the degree of its effectiveness is measured for further implementation. The satisfaction level of its employees is the first priority. It had already battered lot of its wealth in outsourcing and suffered massive losses through backsourcing. Business decisions relating to forming a new IT strategy would evaluate thoroughly the probabilities of the proposed solution and its derivability which has been covered in detail in this report.
Primary Analysis of the case
JP Morgan Chase's decision to outsource did not help. There IS strategy for outsourcing was meant to address the following problems:
1. Economy: IBM stood as a specialist in the IT infrastructure services and trusting them to manage their business operations would mean a good business decision.
2. Service Quality: This was the primary and the most important reason for which JP Morgan Chase wanted their business operations to be taken care by the service provider company. It wanted to position itself better in various markets.
The above factors accounted for a greater share of interest for which JP Morgan Chase wanted to go for outsourcing. But finally it did not work. It faced losses not only on the monetary front but also towards the human resources. The various problems faced by the firm can be summarized as follows:
All the dangers of placing the information systems functions outside the organization were possible noted for the firm.
1. Loss of control: This was pretty much evident that some employees were transferred on IBM's payroll and were not satisfied. It