Information Technology Outsourcing Strategies for a Manufacturing Firm

Available in eBook editions
(PDF format)
Institution:
University of Liverpool (United Kingdom)
Advisor(s):
Keith Cronk
Degree:
Master of Business Administration
Year:
2005
Book Information:
86 pages
Publisher:
Dissertation.com
ISBN-10:
158112323X
ISBN-13:
9781581123234
View First 25 pages:
(free download)
Abstract
To outsource or not to outsource its internal IT department? That is the question
that many firms have been asking themselves. Outsourcing has been around for more
then 20 years in the different manufacturing areas. At first, companies decided to
outsource the manufacturing of components in countries which would be bringing cost
benefits by reducing the overall cost of their products. With the Internet gaining
momentum as a quick and reliable source of information transmission, many
manufacturing firms are now evaluating the possibility to outsource their IT functions in
order to focus their energy, efforts and capitals on core-competencies thus reducing costs
and improving quality of their IT services. From the literature review, we understand that
cost reductions could be obtained, but they are usually less impressive than estimated in
the preparation of a typical IT outsourcing business case. The overall objective of this
dissertation, through the study case of a manufacturing business (THE COMPANY), is to
build a framework that will take into account all the elements necessary for a
manufacturing firm to accurately evaluate the strategic initiative of outsourcing its
internal IT functions in order to achieve not just cost reductions, but improved value for
the users performing activities with these technological tools and processes.