L7 - FIT1003 IT in Organisations Week 7 Developing...

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1 www.infotech.monash.edu.au FIT1003 IT in Organisations Week 7 Developing Successful IT Systems www.infotech.monash.edu.au 2 Objectives for this session • Identify and discuss some of the alternatives available when developing IT applications • Appreciate why organisations outsource the development of their IT applications to external software companies • Understand some of the different development methods used to develop IT systems • Explain the key principles that underlie successful systems development • Explain the key activities of project management, and the role of project management in good systems development www.infotech.monash.edu.au 3 Where we are in the unit … Organisations IT, IS Information Organisations using IT and IS Risks and liabilities of IT and IS Week 7: Developing successful IT systems Communication in organisations The IT Profession
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2 www.infotech.monash.edu.au Lecture 7.1 Outsourcing How are we going to do it? Build, buy or outsource? www.infotech.monash.edu.au 5 Some drivers for outsourcing ( BDT , 3rd edn, p.483) • Globalization • The Internet • Growing economy and low unemployment rate (until recently!) • Technology • Deregulation • Because organisations can www.monash.edu.au 6 Outsourcing in the news N. Swartz (2004) ‘Much More Than Jobs Being Outsourced’, Information Management Journal 38(3), May-June. http://images.businessweek.com/s s/06/01/big_outsourcers/image/int
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3 www.monash.edu.au 7 Why decisions about outsourcing matter ‘Perhaps the most crucial contemporary issue of information management is whether to outsource all or some of the information technologies to specialized- services firms. The issue is not a transient phenomenon; the shift from company-management computing to outsourcing is accelerating. The decision when, how, and where to outsource is likely to be one of the few information-management issues that will be coming up for review at board meetings.’ P. Strassman (1998) ‘Outsourcing IT: Miracle cure or emetic?’, Across the Board , May, http://www.strassmann.com/pubs/outsourcing.shtml, accessed 22 August 2009. http://www.batr.org/sitebuil dercontent/sitebuilderpicture s/outsourcing.gif www.monash.edu.au 8 What is outsourcing? ‘the purchase of a good or service that was previously provided internally’ bandwagon’, Sloan management review 35(1), Fall, p. 74. www.monash.edu.au 9 What is outsourcing? • ‘access to technical talent is limited because customers are often supported by their previous staff’ • ‘whether or not a firm decides to outsource its IS function, the management of IS cannot be outsourced.’ (ibid, pp.77, 85) http://www.qsgi.com/images/main frame_maintenance_images.gif
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www.infotech.monash.edu.au 10 Outsourcing Options www.monash.edu.au 11 Flexibility Making labour more flexible: – Numerical flexibility – Functional flexibility – Wage flexibility www.monash.edu.au
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L7 - FIT1003 IT in Organisations Week 7 Developing...

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