MBA Dissertation – Theories Behind Outsourcing (2010)
Outsourcing Theories MBA Dissertation – There is evidence that a firm’s organisational model to maximise the use and benefits from Information Technology (IT) varies across business sectors. Each model will have an impact on overall organisational effectiveness and the delivery of core competence to the market. A review of two Divisions within of the Co-operative Group suggests that information technology has great potential to improve the financial performance of these Divisions and offer synergies across the Group as a whole.
A study of academic and business literature highlights that whilst a number of organisations have insourced their IT delivery and others may adapt total outsourcing, most organisations adopt a selective approach to IT outsourcing. There are risks with both extremes; keeping everything in-house can be expensive and inflexible, while going outside can involve unanticipated overhead costs. Evidence presented shows that cost reduction, efficiency and improved service continue to drive many sourcing initiatives.
The dissertation provides evidence that there is a shift in organisations that are moving from a ‘doing’ role to a guiding and managing role for IS functions. There is also evidence that the demand for outsourcing is stronger than ever before as organisations look to reduce costs, increase efficiency and gain competitive advantage.
The Commercial Division and the Co-operative Bank IT functions have some similarities in the way they’re organised; primarily in the areas of Project Management and Relationship Management. However the Co-operative Bank has one major difference in that it has decided to ‘build’ services with its Managed Services function. They have successfully ‘built’ services within the bank continually rating higher than external providers. This internal competence has have recently been rewarded when they became the Commercial Divisions ASP for the provision of the Oracle Finance and HR services; beating off two external bids.
- 14,000 words – 74 pages in length
- Good use of literature
- Well written throughout
- Includes questionnaire
- Ideal for business students
3: Research Method
4: Evolution of IS/IT within Organisations
5: Organisational Structure – Outsource or Insource?
Off shore Outsourcing
Mutual Value Outsourcing
Application Service Provider
Conclusions from Research
6: Case Study
Commercial Division IT/IS
IT/IS Design Principles
Internal IS Function
Outsourced Service Providers
Managed Services Organisation
7: Comparative Analysis
8: Key Findings & Conclusion References Appendix