The Study Of S Company IT Service Outsourcing Strategies

IT service outsourcing is the core steps of the information technology industrydevelopment. It is the product of economic globalization. In order to keep the enterprise’scompetitive advantage, more and more enterprises choose IT service outsourcing. Theenterprises can get the cutting edge of IT technology at lower cost, and they can focus on thegrowth of their core competence.“Global IT” is an independence department of S companyafter she divestiture from UTC corporation. It is the urgent problem to S company that all ofthe IT service from UTC will be stop after12months later. It is the most important problemhow to decision IT service strategy of S company.This study focus on how to decision-making their IT service strategy of S company. Itwill study and analysis the feasibility of IT service outsourcing on the side of client’sperspective. As a actual case, It will analysis that why we select IT service outsourcing, howwe do, what possible problems may arise in the process, and what precaution ways can beenused. Firstly, explains the necessity of IT service outsourcing through carding concepts, andanalyzing the scale economy theory, the core competence theory and the transaction costtheory. Base on S company, this study analyze that “IT Service Outsourcing” is the suitableway using Balanced Scorecard (BSC) of IT investment;“Selective Outsourcing” is the bestway using SWOT model;“Equipment Rental” is the best way to get IT equipment throughmaking compare purchase and tent. Secondly, analyze the implementation of IT serviceoutsourcing of S company. Include how to select vendor, how to manage the IT serviceoutsourcing and how to change of S company internal IT. Especially, give the way how toselect low-cost vendor using the economy compare and selection of the equipment rental andpurchase. Lastly, assess the risk of IT service outsourcing of S company. Mainly analyze thebusiness risk, operation risk, culture risk and technology risk. Also give the countermeasuresand suggestions on every manifestation of risk of S company.Analysis results show that the IT service outsourcing of manufacturing industry can notonly save costs, enhance the flexibility, get cutting-edge technology. More important is that itcan make the enterprise focus on their core expertise, enhance competitive advantage. At thesame time, we also can see that we will encounter some risks about this strategy.How to decision-make IT service outsourcing strategy, and how to control the risks. Thatwill be the success key of IT service outsourcing.