Offshoring at Edc
Offshoring at EDC
BACKGROUND
Education Development Center is a non-profit organization that was founded in 1958 to match up academic, business and technical expertise for projects to improve science and mathematics curricula for U.S. and foreign governments, private foundations, universities, and corporations. Today their self proclaimed mission is to “design, deliver and evaluate innovative programs to address some of the world’s most urgent challenges in education, health, and economic opportunity.” As the company expanded to 350 projects in 35 countries, their Information Technology infrastructure could not keep up. Operating on a budget of about $1.2 million annually, Vito Deluca is struggling to find a way to pay the initial estimate of about $3 million dollars to bring the infrastructure up to date. Deluca has taken a chance with an offshore IT subcontractor, which was risky, but so far has proven to be very effective. This has earned some bad press with management however. Deluca has an issue of time, scope, and budget as he needs to upgrade the existing IT infrastructure soon enough to deliver accurate reports for an internal customer in 3 weeks, and over the long term for other projects on a limited budget.
PRIMARY ISSUES
1. The limited annual IT budget at $1.2 million to cover services, salaries and equipment, is not sufficient to fund the necessary IT upgrades given the in house salaried workers and the trusted local subcontractors EDC is used to working with.
2. Inadequate, non-coherent IT infrastructure company wide.
ANALYSIS 1. The IT Director, Deluca, is only able to work with about $1.2 million dollars a year. He can only work with a small fraction for infrastructure changes as the rest is allocated for in house employee salaries, services, and equipment. Deluca has been weighing a few options. One option is to use in house employees to deliver the system upgrades. The in house Information Technology group do not have the
BACKGROUND
Education Development Center is a non-profit organization that was founded in 1958 to match up academic, business and technical expertise for projects to improve science and mathematics curricula for U.S. and foreign governments, private foundations, universities, and corporations. Today their self proclaimed mission is to “design, deliver and evaluate innovative programs to address some of the world’s most urgent challenges in education, health, and economic opportunity.” As the company expanded to 350 projects in 35 countries, their Information Technology infrastructure could not keep up. Operating on a budget of about $1.2 million annually, Vito Deluca is struggling to find a way to pay the initial estimate of about $3 million dollars to bring the infrastructure up to date. Deluca has taken a chance with an offshore IT subcontractor, which was risky, but so far has proven to be very effective. This has earned some bad press with management however. Deluca has an issue of time, scope, and budget as he needs to upgrade the existing IT infrastructure soon enough to deliver accurate reports for an internal customer in 3 weeks, and over the long term for other projects on a limited budget.
PRIMARY ISSUES
1. The limited annual IT budget at $1.2 million to cover services, salaries and equipment, is not sufficient to fund the necessary IT upgrades given the in house salaried workers and the trusted local subcontractors EDC is used to working with.
2. Inadequate, non-coherent IT infrastructure company wide.
ANALYSIS 1. The IT Director, Deluca, is only able to work with about $1.2 million dollars a year. He can only work with a small fraction for infrastructure changes as the rest is allocated for in house employee salaries, services, and equipment. Deluca has been weighing a few options. One option is to use in house employees to deliver the system upgrades. The in house Information Technology group do not have the