Page 64 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure Avinash Bhagat, Lovely Professional University

Notes Unit 4: Business Process and IT Outsourcing

CONTENTS
Objectives
Introduction
4.1 Outsourcing
4.1.1 Types of IT Outsourcing
4.2 Offshore Outsourcing
4.3 Need of Outsourcing
4.4 Issues Associated with Outsourcing
4.4.1 Quality Problems
4.4.2 Legal Issues
4.4.3 Negative Impact on Customer Relationships and Satisfaction

4.4.4 Data Security and Integrity Issues
4.4.5 Special Issues Associated with Offshore Outsourcing
4.5 Planning Outsourcing Process
4.5.1 Establishing a “smart” Outsourcing Strategy
4.5.2 Evaluating and Selecting Appropriate Activities and Projects for Outsourcing
4.5.3 Evaluating and Selecting Appropriate Service Providers
4.5.4 Evaluating Service Provider Locations
4.5.5 Benchmarking Existing Service Levels
4.5.6 Developing an Outsourcing Contract
4.5.7 Establishing an Outsourcing Governance Process
4.5.8 Measuring and Evaluating Results
4.6 Summary
4.7 Keywords
4.8 Review Questions
4.9 Further Readings

Objectives

After studying this unit, you should be able to:
 State the concept of outsourcing
 Discuss the concept of offshore outsourcing
 Discuss the need of outsourcing
 Describe the issues associated with outsourcing
 Explain the concept of planning outsourcing process

Introduction

Outsourcing is any task, operation, job or process that could be performed by employees within
your company, but is instead contracted to a third party for a significant period of time. Outsourcing

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