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Outsourcing Strategies and The benefit and impact of outsourcing to Organization

Outsourcing Strategies and The benefit and impact of outsourcing to Organization. ISM 6910 Information System Seminar Dr Gerhard Steinke by Welly Chandrawan. Introduction.

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Outsourcing Strategies and The benefit and impact of outsourcing to Organization

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  1. Outsourcing Strategies and The benefit and impact of outsourcing to Organization ISM 6910 Information System Seminar Dr Gerhard Steinke by Welly Chandrawan

  2. Introduction • Today, the use of external resources to enhance IT service offerings is complicated by the growth of outsourcing market and the wide range of IT services now available. That’s why IT managers have to know their specific needs not only with the right service but also the correct supplier • Goals of my paper:

  3. Fujitsu Background • Fujitsu Profile • Focus

  4. Siemens Background • Siemens Profile • Focus

  5. What is outsourcing? • Outsourcing is unparalleled strategy to meet today’s needs in transforming important, non core business processes and ensuring the value from resources is focused on core processes.

  6. Why is outsourcing? • aligning IT strategies and business goals. • taking the IT function to a higher level of competence. • reducing IT costs. • gaining technical expertise and knowledge. • focusing on core business competencies.

  7. Satisfaction with Outsourcing Chart

  8. Outsourcing in Fujitsu • Outsourcing is not only the matter of reducing cost but also it can release management time to focus on business performance and growth especially. • Five strategies of outsourcing: a. to ensure cultural alignment. b. to measure both parties objectives c. to keep the sponsors engaged d. to plan progressive change e. to achieve “win-win” objective.

  9. Outsourcing in Fujitsu • Fujitsu Services Area: 1. data centers and hosting services 2. network and desktop services 3. call centers and help desk services 4. system maintenance and support 5. And many more.. • CASE STUDY: Blaenau Gwent County Borough Council.

  10. Blaenau Gwent County Council • Gwent Count Council uses Fujitsu’ network services in order to develop its IT strategy and IT infrastructure • Fujitsu roles: a.to design and implement Local Area Network and Structured Cabling System for the Gwent’s main office b.to act as a strategy consultant for long-term Gwent’s IT strategy • The benefits for Gwent: a. improving the service delivery to itscustomers b. reducing administration costs c. developing the use of existing resources and skills d. getting faster and more effective communications

  11. The impact of the outsourcing to the role of Gwent’s CIO • Gwent’s CIO has to stabilize and cut IT budget. • Gwent’s CIO has to adapt and adjust the rule or regulation of Fujitsu’s services. • In certain period, Gwent’s CIO has also to review Fujitsu’s performance as its outsourcing provider.

  12. Outsourcing in Siemens • Outsourcing is no longer a matter of sourcing services to cut the cost but as an enabler to business strategies to accomplish market-leading performance. • Strategies: a. to build an agreement between both parties involved b. to seek which sourcing models fit in certain business area c. to build a good partnership that allows for negotiation and communication.

  13. Outsourcing in Siemens • Siemens Services Area: a. Help desk solutions b. Desktop management c. Network and security services d. Data center management services e. and many more… • CASE STUDY: Baptist Health System(BHS)

  14. Baptist Health System • BHS outsources all of its IT core functions to Siemens Business Services (SBS). • BHS allocates more than 100 employees to become Siemens’s employees • SBS’s roles: a. providing the help desk supports, all of the software and hardware, and also network infrastructure. b. SBS has also an obligation to provide the services to optimize workflow and simplify operational processes in order to maximize the value of BHS’s IT investments. c. acting as BHS’s consultant in the IT area

  15. The advantages of outsourcing for BHS • By allocating 100 of BHS’s employees in Siemens’s IT division, BHS actually gets quality staffs in IT areas for the long-term perspective. • With the best technology, BHS has an opportunity to enhance care delivery and patient safety. • Significant cost savings and tackling the need of new technology.

  16. The impact of the outsourcing to the role of BHS’s CIO • BHS’s CIO has to make sure and investigate whether the IT services that Siemensprovides still follows up the need of company’s growth or not. • BHS’s CIO has to know how its health care system changes occur and how to drive those changes so that BHS can reap the efficiencies and improvements from IT solution provided by Siemens • Like Gwent’s CIO, BHS CIO’s also has an obligation to evaluate its outsourcer performance in the certain amount of time.

  17. Conclusion • Key Successful of Outsourcing: a. Clearly communicated objectives, expectations and performance measurements b. Arrange to have regular review meetings with the partner to discuss current and future business. c. Ensure the partner's range of services is extensive enough to meet all of your organizational requirements • Risk of outsourcing: Having a possibility about an inability to retain knowledge and expertise in house because of being dependent on an external provider for services that in some cases the business was based on.

  18. Question?

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