Pt Companies It Outsourcing Strategy Research

Along with the IT technology's widely used, IT Service industry becomes more and more specialized. Since Kodak outsourced its main IT operations to 3rd part IT service provider in 1989, IT outsourcing service prevailed gradually. In recent years, many corporations were trying to reduce their operation cost, personnel scale and consolidate their core businesses by the means of partially or fully IT outsourcing. However, it is proved by facts that reckless decision of IT outsourcing cannot always help the corporations to fulfill these strategic objectives. It is very hot subjects that how corporations fulfill their vested objectives by successful IT outsourcing implementation.People developed many theories and methods in the study of IT management."IT Infrastructure Library"(ITIL) is the most remarkable one. Since ITIL was built in UK in 1980s, it has become the best cohesive set of best practice of IT management. ITIL includes many suggestions about the structures and processes of management in IT operation field, and has been perfected via the practices of thousands of enterprises and consulting agencies across Europe and North America, and it has become the de facto standard in IT service management.After studies on many scholars'researches and enterprises'practice, the author of this paper consider that the most important point in the IT service outsourcing is the standardization and process based operation. ITIL just provided the methodology for it to the moment. Currently, the idea of combining the ITIL with IT outsourcing operation has come out in the academia, but there are not too many researches on its practice in a specific enterprise environment especially in a big MNC. PT Corporation, a hi-tech MNC with large scale who encountered many problems in its IT development was chosen as the target of this paper. In this paper, we are trying to discuss how PT corporation optimize its IT organization and consolidate its core businesses by outsource its non-core IT business bases on the ITIL infrastructure. The paper contains four parts:The first part is the introduction of these theories related to this paper, which including outsourcing, IT outsourcing, ITIL as well as the ITIL historical review.The second part of this paper introduces the PT Corporation and its IT department. Based on the analysis of PT corporation by enterprise life cycle method and analysis of the problems PT's IT department encountered, we put forwarded out the solution to rebuild the competitive strengths of PT's IT department by outsource its non-core business base on the ITIL infrastructure.The third part of this paper discusses the preparation work and detail contents of the solution: The preparation work covered how to recognize the non-core business of PT's IT operation, PT's preparation for ITIL implementation, IT outsourcing's objectives as well as project control method; The detail of this solution includes how to build strategic partnership with vendor and how to choose a qualified vendor, the outsourcing implementation process together with vendor, as well as the tracking and tuning method of the outsourcing contract.The last part of this paper is the conclusion and forecast of future researching. We get to the conclusion on the strategic partnership with vendor and with scientific managing methods, IT non-core business outsourcing whose operation is standardized and allied with ITIL can help enterprises reduce the scale of IT department, reduce its cost and improve its efficiency.This paper just offers a few ordinary introductory remarks so that others may offer their valuable ideas to the subject of IT outsourcing standardization and production. This paper also provided some ideas and references to these corporations willing to enter the IT service outsourcing industry. There are still some problems in this paper: on one hand, due to lack of necessary financial data, this paper is lack of discussions based on cost analysis; on the other hand, this paper just provides a solution which is not implemented by the corporation so it's hard to avoid that some reasoning is not strict and does not go to detail on some questions. The author will fix these problems in the future research.