The outsourcing equation is it a strategic asset
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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 l.jpg
The Outsourcing Equation:Is IT A Strategic Asset?

Matthew Heusser

James George

Damiam Dobosz


It doesn t matter l.jpg
IT Doesn’t Matter

  • Nicholas Carr’s Article1

    • Focus on Risks, not opportunity

    • Who needs an IT department?

  • What is a commodity?

  • Our Approach




Considerations l.jpg
Considerations

  • Coaching Model

  • Staff Augmentation model

  • Operational

  • Complete outsourcing


Selecting a partner l.jpg
Selecting a partner

  • Your Tacit Knowledge

    • Vertical or Niche Processes

  • Partner’s Explicit Knowledge

    • Horizontal/Mass-Market Applications

  • Four Types of Outsourcing


Making the case l.jpg
Making the case

  • ROI

  • TCO

  • Payback period


Intangibles l.jpg
Intangibles

  • Specialized Knowledge

  • Reputation

  • Human Resources


Conclusions l.jpg
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

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Q&A

  • What do you say?


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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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