Outsourcing information technology services
Reimers, Michiel Andries Fivaz
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This dissertation is not specifically aimed at the management of an Information Technology (IT) function in South Africa, but also investigates the many other aspects of an organisation's image. During the past five to ten years, IT has undergone numerous changes. The traditional management of' information, where financial support was allocated by means of n watertight business plan, has dramatically changed to a strategic business entity that is managed by the same rules and regulations as any other department within an organisation. The research conducted in this dissertation is aimed at investigating the relationship between IT costs, service delivery and business relationships between organisations and the service providers providing the service. The outcome of the research indicates a gap in this relationship for which there is no obvious solution yet. The following focus areas have been identified by the writer as areas of concern: • An IT model that offers support to top management during periods of “take-overs" and amalgamations • An IT model that assists in cost and service delivery comparisons between business divisions / departments • An IT value proposition that is not clearly and thoroughly thought through • IT that is not aligned with business goals • IT is regarded as an overhead expense and not ns core business The results of the questionnaire conducted indicate a clear difference between divisions departments with regard to important aspects based on strategy, personnel, competence, leadership, systems, shared values and structure. The reality of this suggests a comparison model that supports, outsourcing in conjunction with an effective business model. The so-called Federal model in IT does indeed exist, but to date has not been researched. The Pareto Principle also forms part of such a model but this has also not been investigate in the IT environment. Further research in this environment could be very valuable. In conclusion. this dissertation suggests that a TDi-model (Technology Diversity Indicator) would assist with the comparison of divisions' / departments' IT functions on a strategic level. In addition, it also offers a solution with regard to a change in the management of the IT model should it be outsourced as o service. The transformation of the IT environment must be managed strategically to ensure that risk is limited to the minimum for all divisions / departments.