Global Software Industry
Managing IT Governance & Compliance
Regulations and mandates such as Sarbanes-Oxley, Basel II, the EU Data Protection Directive, HIPAA, and International Accounting Standards have forced profound changes in business policies and processes. U.S. companies will spend $5.5 billion in 2004 to comply with Sarbanes-Oxley. European banks will spend almost $4 billion in IT over the next two years to comply with Basel II.
In Charge of Change: IT executives are adopting IT governance strategies and software to manage the priorities, processes, and people of ITgaining visibility and control over their compliance initiatives. This enables them to:
· Ensure IT compliance initiatives are prioritized and managed on time and on budget.
· Manage benefits, costs, resources, and business objectives within a transparent process.
· Mitigate the risk and costs of business process and application changes.
Enabling Strategic Sourcing
There is a seminal shift from outsourcing IT for cost reduction to "strategic sourcing" for business value. It is estimated that global outsourcing deals will rise 30 percent by 2005, and that the global business process outsourcing market will reach $130 billion in 2004. Strategic sourcingthe optimal mix of in-house, outsourced, and offshore IT projectsrepresents a profound opportunity for IT to maximize business value.
In Charge of Change: IT executives are adopting BTO software and services to optimize IT prior to outsourcinggaining visibility and control over both in-house and outsourced business processes and teams. This enables them ...
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...nearly identical across national boundaries.
· Emerging because of the increasing influence of multinational corporate customers who seek consistency across their dispersed operations.
· Globe-traveling consumers demand products and services regardless of location.
· Global products can provide the basis for economies of scale.
Quality
· Firms benchmark their operations against "world class" standards.
· Iinterdependence increases between domestic and international operations requires a cross-border approach to quality improvement.
· In many industries, advances in information technology already permit a defective product to be traced back to a particular worker, machine, or supplier.
References
§ www.findarticles.com
§ www.google.com
§ www.computerworld.com
§ www.dataquest.com
§ www.forbes.com
§ Business World
§ Business Today
§ Computers Today
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
The outsourcing trend continues to eat up the value chain from blue-collar jobs to white collar jobs3. The software industry is experiencing an outsourcing trend to countries such as China and most significantly to India. The proliferation of the Internet has opened easier access to information and collaborative environments. Previously communication costs and access to mind power was limited. The Internet made communication costs virtually free and collaboration with groups around the makes software engineering and collaboration tasks easier. In additional, liberalization of free markets across international lines has made it easier for companies to set up and outsource engineering tasks throughout the world. Business-process and software outsourcing rely on cheaper cost structure as found in East Asia with manufacturing4.
Global outsourcing first became popular in the apparel and textile manufacturing industries during the late 1960’s and 1970’s. Then it continued with automotive, computers, electronics, and other forms of assembly work during the 1980’s. Most recently, during the 1990’s, now and also in the future the outsourcing is focused on ‘knowledge’ work such as work in software design, technical support, telemarketing, call centers, and back office work. By the end of 2009 Information Technology outsourcing (ITO) revenues were over US $250 Billion while for Business Process Outsourcing (BPO) were more than US$ 140 billion. By 2006, over 200 firms from the Forbes 2000 companies and almost half of the Top Global 250 had offshored IT and business process activities. By 2008 India was managing 65% of the ITO and 43% of the BPO market. In general, India, China, Latin America, Philippines and Mexico have been the top locations for offshoring. The United States is a major player in the offshoring of IT and business process, however, Europe is also catching up. The growth of global sourcing sparked due to the technological advances in the telecommunications industry and the internet w...
A lot of organizations initiate change programs and action plans that vanish after a while but have had, it’s hoped, some impact on performance, even though one cannot be sure. The first challenge when initiating change is to make sure that every employee understands that this business system is not an action plan; it’s a faith that is about what should characterize a really good company, and there are no option to this faith. It is important to put a lot of effort into making everybody understand this (Ahlberg & Nauclér, 2007).
Other researchers have identified several outsourcing issues, trends and strategies that companies take in establishing and effectively managing their outsourcing activities (Sinderman 1995; Carney 1997). The trend is for outsourcing relationships to function more as partnerships. Outsourcing providers are taking increasing responsibility in realms that have traditionally remained in-house, such as corporate strategy, information management, business investment, and internal quality initiatives (Sinderman 1995; Carne...
Although there has been considerable debate regarding IT outsourcing, especially among IT and networking managers, studies have shown that outsourcing has become a viable alternative to maintaining costly internal IT functions, and which can result in significant cost savings as well as performance improvements to organizational operations (Kaplan, 2002). This is considered one strategic advantage of IT outsourcing. Other strategic advantages, according to Antonucci, include (1) lower ...
Jacques, V. (2006). International outsourcing strategy and competitiveness: study on current outsourcing trends, IT, business processes, contact centers. Paris: Publibook.
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