Managing Outsourced IT Using Business Technology Management. John G.H. Schell. November 2002. Overview. Outsourcing Information Systems and Technology: The reasons and benefits. Business Technology Management: Introduction; communication, collaboration, and evaluation. The Synergy:.
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Managing Outsourced IT UsingBusiness Technology Management
John G.H. Schell
Outsourcing Information Systems and Technology:The reasons and benefits
Business Technology Management:Introduction; communication, collaboration, and evaluation
Combining BTM with outsourcing; measuring quality, replacing costs, and realizing benefits
The strategic use of outside resources to perform activities traditionally handled by internal staff and resources.
Perhaps the IT function is not core to the business.
IT Projects keep on slipping
Internal staff may lack the expertise
or resources to do the job well
Exploitation of innovation
Savings for the business
"BTM is a proven and unified approach that enables companies to effectively and continuously align business and technology for improved business performance.”1
BTM strives to align technology with the rest of management
through communication, collaboration, and evaluation.
1F. Hoque, “Aligning Business and Technology: The Principles of Business Technology Management (BTM)”
Give decision makers the right information at the right time
to draw the right conclusions.
Send out Requests for Proposal (RFP’s) to a number of vendors.
Their responses are theirblueprints for the outsourced
The details of their proposals must match the customers
technical requirements and
Risks are unnecessary and easily avoided.
Service Level Agreements guarantee delivery and quality.
In-house contract management using the right personnel keeps the relationship on track.
The cost of outsourcing is meant to replace “visible” and “invisible” in-house IT expenditures
R & D
A common language and common goals for IT vendors and business strategists.
Better management of time and money.
The best competitors know their business well. They focus on core areas. They may not have specialized capabilities to operate their peripheral areas. Such areas are often more efficiently executed by other parties.
Many successful organizations consider outsourcing aspects of their Information Systems. When they do so, they should keep in mind that BTM keeps technology managed as part of the business.
BTM, when used by an outsourcing customer to manage their relationship with the vendor, creates a synergy that reaps the benefits of IT best practices combined with business management.
Carnegie Mellon Software Engineering Institute: Management Practices.
CIO.com: Caveat Emptor by T. Field.
Darwin: The Fine Print by S. Kalin.
Gartner Group: IT Services Sourcing Goes Strategic by J. Beck.
Hughes Software Systems: Outsourcing: A Decision of Trust.
InternetWeek.com: Competition Driving IT Outsourcing Spending Worldwide by M. Mosquera.
Intermec: Professional Services Overview by M. Harms.
Kudos: The Theory & Practice of Outsourcing by D. Griffiths.
Network Computing India: Reinventing E-Business 2.0 by O. Rist.
Transition Partners: Outsourcing... The Decision Process by R. Krahl.
Wipro: Aligning Business and Technology: The Principles of Business Technology Management (BTM) by F. Hoque.
Wipro: Outsourcing: Total Cost of Management Benefits.