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The Outsourcing Equation: Is IT A Strategic Asset?

The Outsourcing Equation: Is IT A Strategic Asset?. Matthew Heusser James George Damiam Dobosz. IT Doesn’t Matter. Nicholas Carr’s Article 1 Focus on Risks, not opportunity Who needs an IT department? What is a commodity? Our Approach. Industry Life Cycles 2. Elements of IT 3.

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The Outsourcing Equation: Is IT A Strategic Asset?

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  1. The Outsourcing Equation:Is IT A Strategic Asset? Matthew Heusser James George Damiam Dobosz

  2. IT Doesn’t Matter • Nicholas Carr’s Article1 • Focus on Risks, not opportunity • Who needs an IT department? • What is a commodity? • Our Approach

  3. Industry Life Cycles2

  4. Elements of IT3

  5. Considerations • Coaching Model • Staff Augmentation model • Operational • Complete outsourcing

  6. Selecting a partner • Your Tacit Knowledge • Vertical or Niche Processes • Partner’s Explicit Knowledge • Horizontal/Mass-Market Applications • Four Types of Outsourcing

  7. Making the case • ROI • TCO • Payback period

  8. Intangibles • Specialized Knowledge • Reputation • Human Resources

  9. Conclusions • It’s probably not yes or no • Consider elements of IT • Consider relationships • Consider risk and benefit • Whatever remains may be the elements of IT that are a strategic advantage http://www.hollandsentinel.com/images/022503/granholm.jpg

  10. Q&A • What do you say?

  11. Citations [1] Carr, Nicholas (2003), IT Doesn’t Matter, The Harvard Business Review [2] Johnson, Arik (2004), The Core of Market Strategy:Turning Market and Competitor Knowledge into Actionable Intelligence, Downloaded on 12 April 2004 from http://www.aurorawdc.com/arj_cics_market_strategy.htm [3] Punalekar, Salil and Paul Kronberg. Strategic Offshore Outsourcing. (A presentation) Downloaded on 26 February 2004 from ttp://www.cognizant.com/cogcommunity/presentations/BCBSHealthcareOutsourcing.ppt

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