IT Infrastructure Outsourcing at Schaeffer Assignment

Document Type:Coursework

Subject Area:Technology

Document 1

Carol. V. Brown, Daniel W. Dehayes, William C. Perkings, Jeffrey A. , & Min, J. W. A book in business that guides the arrangement of points in a logical order. Although position in the company faced Moreno's idea, the Vice-president in charge of IT agreed to it saying that it had more advantages than the current system. Alan, Vice president who was the corporate Vice President, cautioned that IT Infrastructure should be implemented with much consideration. Gartner stressed on the incorporation of the employees. He said that it was essential to know both of what was to be outsourced and out of that scope they related when the intervention of the employees was involved. Gartner emphasized on looking into details all the services offered so that they are included in the contract.

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It was to help run the operations in the way it was supposed to be without leaving out any detail out. Valuable information that needed gathering was about all the activities that need to be incorporated into the outsourced Request for proposal (REP). They did this by information obtained from the consulting company because there were few reliable data centers in the country that could cater to the company needs. The next step included evaluation of bids given by various outsourcing vendors. The company opted for the lowest bidder ABC Corporation because those involved in the selections had confidence with the outsourcer apart from their low prices. Unfortunately, the task force noticed that this price was twenty million dollars more than their budget and therefore the management could not allow that extra money to be included in Schaeffer’s outsourcing budget.

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Because this could make no sense since they had opted for an option of outsourcing the IT service to save money. She said that although IT is not one of the company’s competencies it was not necessary to give and Outsider Company to manage it. She equated it to marring the outsourcer company, and in her view, it was not one of the prettiest ideas because after a period like three years ABC might enter into another contract with a different company which may lead to neglecting Schaeffer’s agreement in case the now deal has more incentives than those of Schaeffer. She added that there could be complications in case Schaeffer added new requirements into the business which might not be covered in the contract agreed upon the two companies.

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She cited that, in the past, such contracts have failed and incased Schaeffer’s contract is terminated prematurely due to conflicts among the two, Schaeffer will end up using more money in setting their IT infrastructure once more as it were before outsourcing. She said that Schaeffer would end up downsizing its IT department regarding the work for. Carol J. Hanna, was another manager who was opposed to the idea. Being the vice president for finance in the Colbert division, she said that although the coursed seemed to be less than that of their in-house IT infrastructure, the cost would end up shooting more than what the company currently spends on the IT system. She said that in the past the outsourcing companies are known to have low bids and prices for the first one year, but once the contract is made, they inflate their prices since they know that the outsourcing company lacks bargaining power.

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Also according to Vivian, the costs won’t be predictable in the future due to the changing circumstances and situations. Outsourcing ABC is like allowing an outsider to come and dictate how things are going to be done and these would profoundly affect the Schaeffer’s local culture and its way of solving IT issues. Also, it would be unfair to layoff a dedicated team that has worked for Schaeffer over an extended period and therefore it would only make sense to outsource an internal division as a way of appreciation to work well done. Another reason to take this alternative is that since the already existing IT team has worked for this company over an extended period, they already have the companies dream in their hearts because they are described as loyal.

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Perhaps what the need is extra training about the new technology and how to manage their IT infrastructure more effectively. It is the solution that is most economical for Schaeffer since there will be less or no extra funds spent to implement this alternative. They did not do questioners on the Schaeffer workforce regarding their expectations with the new outsourced IT infrastructure. The Alan lead taskforce should have taken time in considering other viable solutions to the IT issues other than approaching it with a mindset for outsourcing. Other efficient and effective alternatives could have been used to solve the problem of Schaeffer’s IT system. The task force should have taken into account what would happen to the already existing IT team that is described to be dedicated, hardworking and loyal to Schaeffer for an extended period.

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