1.0 Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
According to Amadeo, 2013, as an employee, a business or a country itself, we need to have a better understanding about competitive advantage and communicate it to the customer. Competitive advantage can differentiate the company and others competitor from the eye of customer. It also will help the company to operate in more efficiency. To be competing in the industry and gain the profit and success over the long term, company need to finding and nurturing a good competitive advantage.
For the IS/IT outsourcing, the outsourcing is hired by the company to others company that provides services for IS/IT. The providers need to do specific job in their expertise. By hiring outsources the company can solve their problems. Nowadays, outsourcings become a trend and it is the common thing for organization to hire IT/IS outsource in managing the business and this is the way to run the business efficiently. In other case, almost the whole information management of the company is outsourced by other company. From planning until maintenance all is managed by outsource. (Margaret, 2007).
So here, what are the relationship between competitive advantage and outsourcing? For my opinion, there a lot competitive advantage that can be gain by company by hire outsources. For example:
1.0.1 Start project quickly
By hiring outsources, company can run their new work or project quickly. To start IT/IS project such implementing new system for companies may take weeks or months even years to handle it internally. Company usually wants to make it fast yet efficiency to use and compete with others ...
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2.2.2 Lack of Expertise
What company expects when they give the project to vendors is they have expertise in their company and they will get a quality product. But what happen here is most or the organization does not have any sufficient understanding the area of knowledge that the vendors have and the value of the expertise they have. This is important to client to dig the information about the vendor. They need to beware of the vendors. Most of vendors have a problem when client ask them for proven for their team of experts. They supposed to state in the resume as a part of their proposal about their team of expert and certificate to prove it. Client has their own right to know the more specific in computer application, programming language or the system platform. The company has the right to insist the specific staff to be assign in the project.
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
make a case study on computer RBS failure ' Caused by inexperienced operative in India ‘. Based on the case study is also required to give an idea of comparative advantage of IS / IT outsourcing in the company. Then, based on the case study of this question me are required to describe the main Threats to take outsourcing IS / It to the company. Next, I need to make recommendations on measures to prevent the occurrence of a failure in the computer system. In addition, I also have an opinion on what I've
access their accounts could have been caused by just one junior technician in India. The benefit that I learn from this assignment is I gained experience on how to do a thorough research and after doing this assignment I know how to prepare my final year project report. Besides that, I can develop a deeper understanding of the case study that can be conveyed through the lecturers alone. For example in this case study I can understand what the story about and how to answer the question that was asked
affected the department in the UK. Union has blamed Fiasco because they decide to take more IT employees of the company from outsource. This will be affects the local workers, Indian staff, because they are paid less than British Counterparts. The Chief Executive of RBS, Stephen Hester defended outsources company and said that there was no evidence that the problem is due from company outsources. The error is occurred after the software upgraded to the bank’s computer system last Wednesday, and it
Processes 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
Task 1 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 occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled employees. New technologies
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. Nowadays, many large companies are using outsourcing through IS/IT sector in order to gain benefits to their company especially reducing expenses
Task 1 Summary Case Study 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
Definition What is outsourcing? Outsourcing is one of the business strategies in getting the items such as service or goods from foreign suppliers or outsider to replace the internal resources. But, outsourcing also can be defined as a strategy used by different companies to save the production and manufacturing costs by transferring the parts of their work to outside suppliers rather than completing the goods by internally. Besides, outsourcing also known as a third-party, where the company asks the others
Outsourcing in Today's World Outsourcing has become an increasingly popular alternative to today’s high costs in business and manufacturing. It largely affects today’s market from a buyer’s perspective, as well as employee perspective. Manufacturers have turned to outsourcing to be more competitive by lowering overall costs. This may include turning over a segment of your business to another company, or by simply duplicating your operations of manufacturing in a different country. Regardless
system of the bank was glitch and caused a left millions of customers unable to access their accounts. It accidently happened and wiped out the information during a routine software upgrade. As a Chief Executive of RBS, Stephen Hester assumes that outsourcing never had caused the problems but things go wrong in technology. They have to learn the lessons from what went wrong in RBS and try to make then less likely to happen in the future. It was affected 17 million customers after software updated from
Competitive advantage of an organization is aims to promote a more profits from competition. Achieved through many avenues include produce a quality product or a good service in the market. Competitive advantage helps the company maintain a good position in the long time and improve the quality of products as the company's image in the developed market potential. Outsourcing is an arrangement in terms of services provided to other companies or prepared at home. It is a trend that is becoming in information
whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization. Companies must familiarize
accounts. It is believed that RBS was upgrading key software named as CA-7 which caused the meltdown and wiped the scheduling data as per the investigations of The Guardian. The bank clearly denied that this meltdown has something to do with IT work outsourcing to India however the technology websites reported that this meltdown was caused by inexperienced operator who is based in India. This may seem like cyber attack because approximately 17 million people suffered but it is no cyber attack, this was
Footwear Industry: Nike vs. the Competition The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, Converse, and New Balance, takes place throughout the globe. With the industry experiencing severe competition, and the product requiring intensive labour, firms are facing extreme pressure to increase their profit margins through their sourcing practices. The following paper will analyse the sneaker industry, while examining the multitude of viable