31Ame21 A medium sized consumer durable manufacturing company outsourced all IT services including systems development, maintenance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
31Ame21 A medium sized consumer durable manufacturing company outsourced all IT services including systems development, maintenance and system support five years ago to a IT systems company. However, the Finance Director is now very concerned about the growing costs of the outsourced IT services, which have increased by about 25% each year. He feels that it is time to bring all IT services back in-house to be managed by the small in-house IT team; otherwise the company will incur a heavy cash outflow which may impact the budgets. The Chief Executive Officer disagrees and feels it would be a mistake to bring IT back in-house. The CEO identifies 3 plans of actions as follows: acturing 72-20 including 8b1651 3/05/21 18b1651-82772-20 Officer 5/21 a. Renegotiate the contracts with outsourcing parties b. Augment the local IT team and bring the IT services inhouse c. Identify a SaaS partner with whom the present small team can interact and establish the IT systems. ate272-2023/05/21 As a MIS specialist, discuss the pros and cons for each of these strategies that would help the management take an appropriate decision. [10 marks] 31Ame21 A medium sized consumer durable manufacturing company outsourced all IT services including systems development, maintenance and system support five years ago to a IT systems company. However, the Finance Director is now very concerned about the growing costs of the outsourced IT services, which have increased by about 25% each year. He feels that it is time to bring all IT services back in-house to be managed by the small in-house IT team; otherwise the company will incur a heavy cash outflow which may impact the budgets. The Chief Executive Officer disagrees and feels it would be a mistake to bring IT back in-house. The CEO identifies 3 plans of actions as follows: acturing 72-20 including 8b1651 3/05/21 18b1651-82772-20 Officer 5/21 a. Renegotiate the contracts with outsourcing parties b. Augment the local IT team and bring the IT services inhouse c. Identify a SaaS partner with whom the present small team can interact and establish the IT systems. ate272-2023/05/21 As a MIS specialist, discuss the pros and cons for each of these strategies that would help the management take an appropriate decision. [10 marks]
Expert Answer:
Answer rating: 100% (QA)
a Renegotiate the contracts with outsourcing parties Pros 1 Cost reduction Renegotiating the contracts with the outsourcing parties can provide an opportunity to negotiate lower service fees or obtain ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these general management questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Samson Company manufactures embroidered jackets. The company uses a standard cost system to control manufacturing costs. The following data represent the standard unit cost of a jacket: Fixed...
-
The practical limit for carbon-14 dating is about 60,000 years. If a bone contains 1.0 kg of carbon, and the animal died 60,000 years ago, what is the activity today?
-
What is meant by: representative, population; sampling units?
-
What is meant by the term fact pleading?
-
Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $ 600,000 in assets. The costs of producing and selling 10,000 halogen lights are...
-
d. Differentiate long and short position in derivatives trading. (4 marks) e. For each of the following scenarios, state whether your option is in-the-money, out- of-the money or at-the-money. i. ii....
-
Jackson et al. (1987) compared the precision of systematic and stratified sampling for estimating the average concentration of lead and copper in the soil. The 1-km2 area was divided into 100-m...
-
Create two parametric equations where x is a function of t and y is a function of t. 1. First plot t versus x, then plot x versus y. What kind of regression should you use for each one based on your...
-
1. In detail, explain the difference between speed and velocity, including instantaneous speed and instantaneous velocity. Please provide at least one example of each concept to illustrate the...
-
Bostwick Chemicals started business on April 1. The following operations data are available for April for the one solvent it produces. Gallons Beginning inventory 0 Started in April 359,000 Ending...
-
How does mass media and morality function combine to connect horror, mass media, adultery, and punishment in the film The Ring? Follow the link below to my documentary "Wrath of Samara" and use it to...
-
How can advanced automation tools and artificial intelligence enhance patch management, and what are the potential risks of relying too heavily on automated solutions ?
-
What approaches do you use to test and validate patches in a non-production environment to ensure stability before deployment to production systems ?
-
How can government intervention affect the exchange value of a currency? Will the currency generally rise or fall if a government sells assets to foreigners? What is the likely impact of domestic...
-
For the given transfer function: Vo(s) / Vi(s) = (s^2C^2R^2 + 1) / (s^2C^2R^2 + 4sCR + 1) Assumiing that 1/(CR) = 120 PI so write the matlab code to find the magnitude plot
-
JIT and group technology You are a manufacturing manager faced with the decision about how to improve manufacturing operations and efficiency. You have been studying both group technology and JIT...
-
Prices must cover both variable and fixed costs of production. Do you agree with this statement? Explain.
-
How is a just-in-time manufacturing system different from a conventional manufacturing system?
-
An equilibrium mixture of ethylene and propylene is at \(2500 \mathrm{kPa}\) and \(25.0^{\circ} \mathrm{C}\). Find the vapor and liquid mole fractions of ethylene. Use DePriester charts or Eq....
-
We have a mixture that is \(35.0 \mathrm{~mol} \% \mathrm{n}\)-butane with unknown amounts of propane and n-hexane. We are able to operate a flash drum at \(400.0 \mathrm{kPa}\) and \(70.0^{\circ}...
-
Find the diameter and length of a horizontal flash drum for Problem 2.D1c if a hold-up time of 1.0 hours is specified. Problem 2.D1c c. If the feed is \(30.0 \mathrm{~mol} \%\) methanol and we desire...
Study smarter with the SolutionInn App