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Regarding It Outsourcing And Website Development Companies |
| Botched IT Outsourcing Contract Shows Need For Governance, SLAs - Website Development. Botched IT outsourcing contract shows need for governance, SLAs
Home > CIO Tips > IT/Business Strategies: IT and business alignment tips for CIOs > Botched IT outsourcing contract shows need for governance, SLAs
Botched IT outsourcing contract shows need for governance, SLAs
Rachel Lebeaux, Associate Editor 10.28.2009
A botched IT outsourcing contract in the state of Virginia has led to missed deadlines, widespread service outages in several state offices and even the firing of the state's CIO -- and holds lessons for any organization outsourcing IT operations.
More IT outsourcing and governance resources
Multi-sourcing requires IT governance strategy with multiple tiers Solid governance model key to IT outsourcing contract success
Virginia's $2 billion IT outsourcing contract with global security firm Northrop Grumman Corp. has resulted in numerous network crashes and uptime difficulties, according to a legislative audit released Oct. 13. The contract covers a computer upgrade and management of the state's IT systems and services. (See sidebar for Northrop Grumman's response.)
But while state workers and residents have felt some ill effects from the IT outsourcing arrangement, terminating the 10-year contract could cost the state as much as $400 million and leave Virginia with nobody to manage its computer systems, reports say. Moreover, the initial contract, signed in 2005, did not include sufficient penalties for poor service levels -- hence, the state cannot collect monetary damages related to these IT interruptions.
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| IT Outsourcing: China Versus India - Graziadio Business Report - Website Development. China presents a major threat to India in the global IT outsourcing industry.
Rough economic times make the outsourcing of information technology (IT) an even more critical area of discussion for businesses. Recently, there has been a great deal of debate on whether a shift in the global outsourcing of IT is occurring. India has long been known for its dominance in the field; however, China, which plays a leading role in the outsourcing of manufacturing, is making strong headway in the industry and may soon pose a major threat to India's supremacy.
New management models and business strategies have evolved since the onset of globalization. One such corporate strategy is global outsourcing, which is receiving more attention than ever due to its effectiveness in cutting costs. [1] Global outsourcing can be defined as a strategy that allows corporations to redesign, redefine, and reshape organizations by transferring the management and/or day-to-day execution of a business function to an external service provider. [2] Used responsibly, it can generate enormous benefits. [3] There are two countries that stand at the forefront of the global outsourcing movement: India, which is considered the mecca for outsourcing IT services, and China, which has a strong reputation in the outsourcing of manufacturing work.
IT Outsourcing: China versus India - Graziadio Business Report
2009, Volume
12, Issue
3
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IT Outsourcing: China Grasps for the Lead
Yunus Kathawala, PhD , and Christoph Heeren
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Website about It Outsourcing - Virginia's $2 billion IT outsourcing contract has gone awry, with service interruptions and missed deadlines. Learn why IT governance and clear SLAs matter.
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