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Strategic Intent for IT Outsourcing - Copy - Copy (2)

Strategic Intent for IT Outsourcing - Copy - Copy (2) -...

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MIS 6372 Managing Outsourced IT-Enabled Service Professor: Shawn Alborz Leran Liu Strategic intent for IT outsourcing Abstract: Many companies are facing the similar achievement: want to reduce the cost by outsourcing the IS department while enhancing the business performance. By doing so, they can focus on the core competency yet still achieve the new technical skills. A company needs to evaluate the status quo to find out the high costs and the need to outsource the IT. From the analysis, they will form a strategic goals and strategic intent to achieve them. There are three types of strategic intents that will require different approaches and tactics for each one of them. 1) IS improvement that will seek cost reduction, better performance from core IS resources and also the drawback of the improvement. 2) Business impact that
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Unformatted text preview: focuses on deploying IT to improve critical aspects of business performance and realization of alignment between the business and IT process. 3). Commercial Exploitation that aims to leverage technology-related assets through various products and services. Since each of the three types will have different characteristics of risks and reward, the customer’s relationship and need with the vendor must be aligned with that strategic intent. When evaluating the outsource opportunities, the customers have to favor the contract that reflect and reinforce the strategic intent they pursue, anticipate the changes and ensure the favorable continuity relationship with the vendor....
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