It Outsourcing1. IntroductionThis chapter states the problem area (section 1.1) and defines the thesis aim (section 1.2). Section 1.3 describes expected results while section 1.4 describes the thesis target groups. The thesis structure is shown in section 1.5.
1.1 Problem areaIn the current dynamic and information technology (IT)-driven environment, organizations have to stay competitive through the use of new information technologies and tools. However, the development and maintenance of these new technologies are not an easy task. Organizations have to focus their efforts on what they do best, their core business. IT outsourcing has therefore become a viable option to hand over an IT-based service that would otherwise be an in-house service to an external provider (Gasco, Gonzalez & Llopis, 2005). Many organizations turn to IT outsourcing in order to achieve benefits as cost reduction, improved quality of service, higher external expertise, and risk reduction (Lei-da & Khali, 2002; Bahli & Rivard, 2005; Brandes, Brege & Lilliecreutz, 1997; Barthélemy, 2003; Kern, Lacity & Willcocks, 2000).
Even though organizations seek common benefits, there are always risks involved with an IT outsourcing project (Asif Pasha, 2005). Even if organizations are aware of “all” risks, they still cannot guarantee a successful project outcome. A risk analysis will definitely give the organization knowledge about common traps in an IT outsourcing project. In order to avoid these risks, organizations first need to understand common critical success factors (CSF) that have to be fulfilled in order to increase the possibility of success (Gasco, Gonzalez & Llopis, 2005; Brandes, Brege & Lilliecreutz, 1997).
In order to achieve benefits and raise the chance of success with an IT outsourcing project, our view is that organizations have to consider three areas: CSF, risks, and management. Figure 1 show these areas, which are needed before launch and during an IT outsourcing project. Complementary, table 1 shows literature used to create figure 1.
Figure 1: Areas to consider when managing IT outsourcingThe area of CSF (A) needs to be considered in order to understand what the organization should strive for. These factors describe conditions that need to be met to increase the possibility for success in IT outsourcing projects (Aggestam & Söderström, 2005). The risk factors (B) are the opposite of the critical success factors. Risks show the pitfalls that the organization has to avoid in order achieving its goals. Even if an organization knows its aims and risks, there has to be a process in place for how to achieve the aims. Management (C) is the process of planning, organizing, leading, coordinating and controlling the project towards the CSF (A) while
E.e., the project manager is the project co-advisor. The project manager needs to identify the weaknesses in the organization, such as performance, security, technical requirements, cost of management, budget of activities, the operational and logistical planning, and management structure. In most such cases and situations, the projects are only planned and under budget in the project management plan. The problem that has to be overcome by managing them is not to be taken into consideration in order to achieve a certain IT outsourcing goals, however the issue may be taken into account when deciding to manage IT outsourcing projects (A), in order to accomplish their specific goals. A project manager needs to develop a project management plan which includes all the features for managing IT outsourcing projects which has been developed, but which the IT organization need to adapt. It is also the project manager needed to identify all the requirements of the team and to implement changes in the project manager’s mind so that the new team can fully understand and comply with the requirements of the project. The IT manager, at the end of her/his career, will be expected to develop an IT architecture which provides all the features needed for IT outsourcing projects (A). The project director needs to be able to use all the resources available at the project and to make sure appropriate maintenance is present so that the entire team could be prepared for the IT administration’s needs. The project manager needs to be able to implement the plan of management in terms of the project’s activities and the IT organizational structure, so long as certain issues of the IT organization are met. IT outsourcing projects need to be able to cover the most technical, political and environmental requirements of the project, as well as the entire organizational structure of the organization. The project manager needs to understand the concept and principles of the project as well as the objectives of the IT organization. It is also the project manager who will manage and manage project management as well as the IT organization in the application stage of the project, in accordance with the following principles: 1> The goal must be to: (A) Ensure that all projects of all organizations are organized and managed effectively, using only the minimum necessary personnel available to accomplish tasks of all levels
2> The project team must have all the needed competencies including the management, administrative and support roles;
3> The project team has to be prepared for the IT administration’s needs
4> The project manager must have the ability to participate in the management of its team;
5> The project has to ensure that the IT organization can manage the management of its IT infrastructure
6> The IT organization must be able to be able to support high-impact projects
7> The IT organization should have the organizational structure and structure with the specific goals described in this paragraph.
Organization of project infrastructure