The RBS group is a large international banking and financial services company. From its headquarters in Edinburgh, the Group serves over 30 million customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. (http://www.rbs.com, 2013).
1.1 Overview of the case study: RBS computer failure caused by inexperienced operative in India. (By Hannah Furness)
In the case of computer failure has happened to RBS, their party has responded that it is a good thing, even something that is not good. The good news is because they are aware of how sensitive they need in dealing with its outsourcing process. Moreover, the bad, they should pay compensation to their clients. Besides, as the problems persisted, the response became less effective.
The problem had caused a core payments system goes down, people cannot pay for the things they need, companies cannot function, commerce grinds to a halt and economies fail. However, the IT failure that hit RBS will cost the bank more than predictable as £50m is paid to customers in compensation. Perhaps, in order to redeem some of the confidence and trust from their client, they have lost what they need to be more open about the root cause of the failure.
Summary of the case study
In view of the difficulties experienced by the RBS, they should be more sensitive in doing outsourcing. This is because, in the event of his problems as already stated, it would be disadvantageous sides. RBS own behalf, they should pay damages and the shame of the problems that have occurred. They also face difficulty to get back the trust and confidence from their client. In addition, those parties should also not blame the technician. This is because it will present to the public that the RBS is not resp...
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...g Allows Distribution Companies to Gain Competitive Advantage [online] 1-3 available from http://www.capgemini.com/resource-file-access/resource/pdf/b_Outsourcing_Allows_Distribution_Companies_to_Gain_Competitive_Advantage.pdf [19 December 2013]
Leonard Hook, Kairos Group International (2004) Strategic Outsourcing for Competitive Advantage [online] available from http://www.aipmm.com/html/newsletter/archives/000059.php [8 December 2013]
Luke Arthur, Demand Media (2013) Does Outsourcing Information Technology Provide a Competitive Advantage? [online] available from http://smallbusiness.chron.com/outsourcing-information-technology-provide-competitive-advantage-30632.html [10 December 2013]
Mike Hill, Itica Consult (2012) RBS Computer Problems – What can we learn? [online] available from http://itica.com/blog/rbs-computer-problems-what-can-we-learn/ [10 December 2013]
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 (...
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
The competitive advantage that can be gained by the companies through IS/IT outsourcing is Improved business processes. IT outsourcing an identification method and rigor of IT resources that can help the business run smoothly. It can control the development of the project budget and expenditures. It also can promote information technology investment proposals from outside and provide skilled individuals in managing IT resources available in the company. Through these companies are able to provide appropriate information and report to the company. This can give competitive advantage to the company. For example, expenditures, progress, and issues the company can be viewed and controlled.
...pital resources like distribution vehicles and storage warehouses should be outsourced to help reduce the high cost of operation which in turn can lead to reduction of its products price. The company should concentrate on product development and evolution and delegate distribution roles to outsourced firms. Such initiatives have worked well in the new Indian market and should be implemented in other areas.
The summary we can make after read the case study is the system down in RBS Company has make the million of customer unable to access their account. The management in Royal Bank of Scotland (RBS) have found people who have caused the problem which is the junior technician from India, who accidentally erased a massive swathe of information during a routine software upgrade...
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
[4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
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.
A Report on NatWest Bank and an Analysis of the Banking Industry 1. Introduction This report focuses on NatWest and the industry in which it operates. The purpose of the report is to give a concise but accurate view of how NatWest operates as an organisation and the links between its environment, in this case the banking industry. Company History =
Barclays group PLC is one of the largest financial providers in America, Europe, Asia, Australia, Africa and Middle East. , It which is mainly engaged deals with credit cards, retail banking, investment banking, corporate banking, and wealth management. The bank is made up of investment and corporate banking, global retail banking and wealth management, each of which has several business units (Burn, Cartwright &Maudsley, 2009).
Han, K., & Mithas, S. (2013). Information technology outsourcing and non-it operating costs: an empirical investigation. MIS Quarterly, 37(1), 315-331.Retrieved December 3, 2013 from EBSCOdatabase http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=85634454&site=eds-live},
Computers are very complex and have many different uses. This makes for a very complex system of parts that work together to do what the user wants from the computer. The purpose of this paper is to explain a few main components of the computer. The components covered are going to be system units, Motherboards, Central Processing Units, and Memory. Many people are not familiar with these terms and their meaning. These components are commonly mistaken for one and other.
They were going to need the best technologies that were available to them. With the constant growth, Bharti needs a way to be competitive in the growing industry. Akhil Gupta, the former CFO and current managing director, recognized that the company was not able to handle its growth and maintain high customer service along with having to manage its ever-changing IT and network services. His proposed idea to handle the challenges Bharti was faced with in their IT and network services was to outsource those areas in which Bharti was not completely competent in. Could outsourcing be the way of the future for Bharti?
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