Schaeffer IT Outsourcing
Case IV-3: IT Infrastructure Outsourcing Schaeffer (A) Schaeffer Corporation must have improved information technology services in order for them to achieve their ambitious growth goals. Schaeffer’s IT is not one of their core competencies and they are able to save some money by outsourcing and expending into additional countries and acquiring these new companies will require extraordinary IT support efforts.
Schaeffer Corporation has five challenges associated with their decision to outsource. In order of priority, the first challenge is that what if there is a problem with the contract? If new situations arise that weren’t in the contract, Schaeffer is unable to renegotiate contract thereby losing lots of money in the process. This will require additional costs without additional benefits. Contract negotiations are an integral part of the purchase process because it is hard to renegotiate a contract with selected vendors (398). The project manager involved in the contract writing and negotiation steps should re-read the company’s needs and the package’s capabilities before making a major decision. Successfully implementing a packaged application requires commitment from business managers and users so having a project manager satisfy the role to manage technical aspects of implementing a package (400).
Challenge number two is that if Schaeffer outsources, the data center will be in Vilona and not all employees will want to work in Vilona so this causes employees to leave Schaeffer not because they want to but because they have to. Project management can also use Schaeffer’s loyal and long time staff for certain parts of the project implementation and see what else they can do for their due to the change in outsourcing. Ten people have decided to leave for other jobs during the outsourcing decision process. IT people have been displaced by ABC employees. Outsourcing is already having an impact on the culture of the company and individuals with the best
Schaeffer Corporation has five challenges associated with their decision to outsource. In order of priority, the first challenge is that what if there is a problem with the contract? If new situations arise that weren’t in the contract, Schaeffer is unable to renegotiate contract thereby losing lots of money in the process. This will require additional costs without additional benefits. Contract negotiations are an integral part of the purchase process because it is hard to renegotiate a contract with selected vendors (398). The project manager involved in the contract writing and negotiation steps should re-read the company’s needs and the package’s capabilities before making a major decision. Successfully implementing a packaged application requires commitment from business managers and users so having a project manager satisfy the role to manage technical aspects of implementing a package (400).
Challenge number two is that if Schaeffer outsources, the data center will be in Vilona and not all employees will want to work in Vilona so this causes employees to leave Schaeffer not because they want to but because they have to. Project management can also use Schaeffer’s loyal and long time staff for certain parts of the project implementation and see what else they can do for their due to the change in outsourcing. Ten people have decided to leave for other jobs during the outsourcing decision process. IT people have been displaced by ABC employees. Outsourcing is already having an impact on the culture of the company and individuals with the best