Information Technology outsourcing one company`s experience: The successes and the lessons
From Amoco Canada`s perspective there is no doubt it has been successful in meeting all of its financial and service level outsourcing objectives. There are, however, a number of lessons to be learned, e.g., public information sources attempt to present a universal picture of outsourcing. In reality, there is no such thing as a typical outsourcing arrangement; in evaluating the decision to outsource, organizations must understand the value of the information technology functions being considered; selection of staff retained in-house is key to the management of the outsourcing arrangement; meaningful cost efficiencies can only be achieved if every effort has been made to maximize cost effectiveness of the in-house operation before outsourcing; once the outsourcing decision is made, the contract is the only instrument that ensures expectations are realized. Documenting the spirit and intent of the negotiations in the agreement will bring considerable savings in contract management; and service levels and performance measurements are not the only method of determining the success of an outsourcing agreement. The processes involved and the relationship with the vendor are of equal importance. The primary conclusion to be drawn from Amoco Canada`s experience is that while an organization may decide to outsource some or all of its information technology functions, it should not outsource the management of information technology.
- OSTI ID:
- 28775
- Report Number(s):
- CONF-940757-; TRN: 94:007988-0011
- Resource Relation:
- Conference: 9. annual Society of Petroleum Engineers (SPE) petroleum computer conference, Dallas, TX (United States), 31 Jul - 3 Aug 1994; Other Information: PBD: 1994; Related Information: Is Part Of Petroleum computer conference; PB: 424 p.
- Country of Publication:
- United States
- Language:
- English
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