Systems Outsourcing Relationship Factors †Free Samples to Students

Question: Discuss about the Systems Outsourcing Relationship Factors. Answer: Introduction: Offshoring is the mechanism most information technology related firms have been capitalizing on not only to increase profits but also to expand their business. It has become a norm for the information system (IS) company's activities and functioning (King, 2008). Much of the success of the successes of this strategy can be attributed to relations in the products and functioning if the offshoring sites. There has been understanding that in offshoring and outsourcing to be successful there had to be stable interdependence and continued the exchange of information. However, it worth noting that some companies have reaped and achieved a lot in offshoring without interlinking their offshore companies. The interdependence between the companies declines with time as their activities continue to be distinct. An example is the two-phase offshoring exhibited by an Irish site for the Pennysoft and Semicon global companies of the U.S. (Conchuir, Holmstrom, Agerfalk, Fitzgerald, 2008). Competiti on is taking center stage in the business, and this will progressively lead to an advance from two-stage offshore sourcing to multistage offshoring. Based on the study by Conchuir, Holmstrom, Agerfalk, Fitzgerald (2008) I have realized there are different designs can adopt offshoring. For example, the Semicon Company fends off any interdependence in offshore sourcing at early stages of their projects as opposed to Pennysoft that advocates for a relationship of its activities to the finishing line. My understanding has been, for the offshore sites to continue running they will have to depend on their mother company of a bridge site. In Semicon, the Irish and Indian sites are independent of the U.S. site in conducting their day-to-day activities. Reducing cross-site interdependence consequently, reduces the communication and coordination costs of the cross-sites. It's only in unique projects that require the skills of the other site relationship can exist. I have been holding to the idea that communication at all levels should be emphasized between the sites. The Semicon company communication between the team is limited to a certain degree, that is, at managerial level. Their engineers have no communication with others, which is an effort to minimize overhead communications. Coordination cross-sites is another aspect of importance for the running of sites that are in different locations. The Irish places in both companies are bridging between the U.S. and the Indian sites to enhance the smooth running. The three locations, in this case, carry out different activities that contribute to the accomplishment of various projects. I have a firm believe that geographical separation between the gaps has to be bridged to ensure successes in the business. However, the in Semicon company, there is little coordination between the U.S, Irish and Indian sites since little communication is exercised between them. Limited communication thwarts coordination. Surprisingly, the Semicon Company is managing its activities well with little focus on cooperation. I have an understanding that a hierarchal organization enhances the proper execution of duties (Goles Chin, 2005). For example, the U.S site being the main company should delegate responsibilities to the Irish site which will then transfer them to the Indian site. Like the Pennysoft activities are chiefly run by the U.S site, to the Irish and then appointed to the Indian site. At Semicon, this is different since every site operates as an independent entity and does not adopt a hierarchal form of organization. Even without following such organization Semicon manages to run its activities. References Goles,T., Chin,W.W. (2005). Information systems outsourcing relationship factors.ACM SIGMIS Database,36(4), 47-67. doi:10.1145/1104004.1104009 King, W. R. (2008). Issues in IS Offshoring. Information Systems Management, 25(3), 287-289. doi:10.1080/10580530802151244 Olsson, H., Conchir, E., gerfalk, P., Fitzgerald, B. (2008). Two-Stage Offshoring: An Investigation of the Irish Bridge. MIS Quarterly, 32(2), 257-279. Retrieved from https://www.jstor.org/stable/25148840