REACTION:

IT Outsourcing
Maximize Flexibility and Control.


In this article it talks about the company research in using the new technology in their business.
The course of this research, they identified some individual best practice for sourcing IT. They ran up with a crucial decision whether; it would be strategic or commodity. And that should drive their sourcing decisions.

They stated that the strategic system will maintain high levels of service and it would be the priority.
Therefore companies should pursue short-term outsourcing contracts, because they do not know what might happen in the future. And yes indeed, IT activity is a business-critical and it does not mean that all its elements have to be kept in-house.
In choosing suppliers, the company should take the first step in designing a process, that the company should solicit separate bids for each service. The members of that company also agreed that they could not automatically assume that the supplier would outperform their own IT department; and should allow competing when such doubts arose.
The company should have their continuous learning, because company might involve into unavoidable conflict with an IT. So, the suppliers should also know how to interpret the service levels that had spelled out in their contracts.

The goal of maximizing flexibility and control, the managers’ sought bids from many supplier and let the IT department compete for parts of the business and negotiate for short-term contracts, and postponed some outsourcing decisions and retained managerial control of business critical operations.
Competitiveness comes from the ability to manage change by applying the proposition to IT. Hence, the companies must have their internal capability to stay on top of suppliers relative strengths and to scan horizon for most useful new technologies. IT contributes to a companies strategy and it strengthens their system in developing some projects in the future, and no competent corporate leader would willing to grant control of strategy.