By Dimitris N. Chorafas
Many agencies are actually constructing guidelines for outsourcing IT and different simple services, this e-book analyzes this factor from the viewpoint of either the outsourcer and the insourcer. Dimitris N. Chorafas describes administration wishes and exhibits how know-how can be utilized to fulfill those wishes. The ebook additionally highlights the advantages and hazards that businesses face once they try and differentiate themselves via new know-how. The booklet relies on an intensive examine undertaking within the US, united kingdom, Germany, France, Switzerland, and Sweden.
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Extra info for Outsourcing, Insourcing and IT for Enterprise Management
Example text
Another failure with outsourcing proposals is lack of answers to critical questions such as: • What happens if the deal does not deliver the promised benefits? • What if the insourcer will not have the right service ethos? • Which are the ways and means that will make feasible an exit strategy, if the project does not deliver as expected? Outsourcers should never expect the insourcer(s) to share ideas and strategies, or map the outsourcer’s own future direction. Neither should they believe all insourcers have commitment, track record, special skills and financial strength.
Basically, what a company perceives as ‘core’ has a lot to do with its: • choice of strategies • edge in the market • value differentiation from competitors. By definition, core functions are those essential to engaging in the provision of services. They include the development, management, sales, delivery and control of products. For instance, in commercial banking core functions are accepting customer deposits, making loans to customers, credit and actuarial assessments, trading in securities, managing the institution’s own investments, advising the client and managing his or her portfolio.
The need for improving transparency through management policy and high technology is highlighted by the fact that the current accounting treatment of complex financial products, like derivatives, can only be made transparent by means of intraday evaluation and reporting – done in a way able to flash out existing problems. • All companies should be interested in this reference because derivative instruments are at the foundation of the new economy. • Derivative financial instruments are as well a prime example on outsourcing, as we will see in Chapter 2 with Sainsbury.