Introduction
This is about computer failure of Royal Bank of Scotland (RBS) that happens in India. It is said that it happens because of “inexperienced operative” by Indian staff was accidentally wiped information when doing software upgrade. It is also a blame that the problem occurs because of outsourcing. But, it has been opposed by Stephen Hester, the chief executive of RBS because there was no evidence that outsourcing had caused the problem. However, it is already happen and the company needs to responsible to what had happen. Even though the problem was solved in three days, the company has to bear losses from 17 million customers and it created a backlog of more than 100 million transaction and all the losses is cost up between £50 million and £100 million.
Nowadays, many large companies are using outsourcing through IS/IT sector it is because the company was not in the field of IT / IS also in order to gain benefits to their company especially reducing expenses. It also to ensure that the company can focus on their core business and give other operation to outsourcing company that is expertise on the field.
Question 1
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Competitive advantage is when a company or country can produce a product or services at the lowest opportunity cost compare to their competitor. Meanwhile, outsourcing is when one company outsourced their portion of work or job to another company that are more expert and experienced to handle the task and also almost every large company outsources their portion of work or job in order to gain competitive advantage.
There are some competitive...
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...oftware that help automatic maintenance schedule, troubleshoot problem, and
give information about the computer systems. By doing disk maintenance, it helps computer systems stand in it top performance. At the same time it can reduce the probability of computer systems failure will happen.
Lastly, by implement security features to the computer systems also helps the computer systems from failure. It can be done by using password or control the network access. With that, an authorized user cannot access to the network or computer systems easily. It helps prevent the data and information in the computer systems be stolen. It also true that there are many ways computer systems might be failure even there are many ways that have been done to avoid it. But, the above ways is between the best ways can be performed as a precautionary alert to prevent it from happen.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what
His proposition is that a resource can be considered as a strategic advantage only when a company has a differentiating resource compared to its competitors. With this proposition he confirms the Resource-Advantage theory laid out in 2002 by Hunt and Morgan. The accessibility and cost-effectiveness of IT related functionality resulted in its omnipresence. This entails that a manager must understand it differently, viewing it as a necessity, like capital or people.
Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without much effort.
The significant level of outsourcing programs used across all business sectors is well documented in the literature (Bender 1999; Quinn 2000; Dun and Bradstreet 2000; Klaas, McClendon and Gainey 2001). Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996).
In the case involving Sterling Computers and Nobugs, Sterling has a viable breach-of-contract claim. NoBugs should have known or knew about the faults in the microchips. Thus, Sterling has a reasonable
Case study is about computer failures that occurred at Royal Bank of Scotland due to inexperienced operative in India. this has resulted in millions of customers unable to access their account simply because of a mistake made by a technician. This issue occurs when the software upgraded is implemented. All programming staff at RBS admits that matters is occurred because they have been based in Hyderabad, India.
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 ...
In that case, unions have already blamed the fiasco. That is because the fiasco make the decision to outsource much of the company’s IT jobs, as Indian staff are paid little compared with their British counterparts.
This is about computer failure of Royal Bank of Scotland (RBS) that happens in India. It is said that it happens because of “inexperienced operative” by Indian staff when doing software upgrade. It is also a blame that the problem occurs because of outsourcing. But, it has been opposed by Stephen Hester, the chief executive of RBS. However, it is already happen and the company needs to responsible to what had happen. The company has to bear losses from 17 million customers that are more than 100 million transaction and all the losses is cost up between £50 million and £100 million.
I was given a task by Madam Manaf to complete the Business Information management assignment about RBS computer failure 'Caused by inexperienced operative in India'. This assignment tells about the computer glitch at the Royal Bank of Scotland which left millions of customers unable to access their accounts could have been caused by just one junior technician in India.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
One main apprehension that they have against Information System is the high investment cost. In addition to this there is the high maintenance and upgrade costs associated with the deployment of new IT systems. In fact they prefer to outsource the heavy IT department expenditures to other companies having IT as their core activities. In return they expected to receive a full solution pack to meet their requirements and they are ready to pay these IT services as an operating cost. At the same time the risks associated with IS are being shifted to the other
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.
The operating security protects the system from threats, viruses, worms, malware, and hackers. An ounce of preventative is better than a pound of cure, as the old saying goes. The same is true for operating systems. The security preventative keeps the computer assets safe from being stolen, compromised, or deleted. The operating system’s security allows applications that have been scanned for viruses and deemed clean to run smoothly. It allows the system to perform required tasks and prevent unauthorized programs from