The main functions of an IS department are
plan how to use IS to accomplish organizational goals and strategy
manage outsourcing relationships
protect information assets
develop, operate and maintain the organization's computing infrastructure
develop, operate and maintain enterprise applications
CIO stands for
In many organizations, the CIO reports directly to the CEO
Under the CIO,, there are often four managers or directors of
technology
operations
development
outsourcing relations
The CIO is responsible to
align information systems with organizational strategy; maintain the alignment as the organization changes
communication IS/IT issues to the executive group
develop/enforce IS priorities within the IS department
sponsor steering committees
Outsourcing is the process of hiring another organization to perform services
Any business activity in the value chain can be outsourced
The three most popular reasons for outsourcing IS services are
management advantages
cost reduction
risk reduction
Examples of management advantages are
obtain expertise
avoid management problems
free management time
Examples of how outsourcing can reduce costs are
obtain part-time services
gain economies of scale
Examples of risk reduction are
cap financial exposure
improve quality
reduce implementation risk
Popular countries to outsource to are
india
china
philippines
Outsourcing of hardware can be accomplished by using Infrastructure as a Services (IaaS)
Outsourcing the acquisition of software can be achieved by using licensed rather than home-grown software and also by outsourcing software development
Outsourcing hardware and software can be achieved by using Software as a Service (SaaS)
When you outsource hardware, software and data, you are using SaaS.
Three common risks to outsourcing are
loss of control
benefits outweighed by long-term costs
no easy exit
Examples of loss of control include
vendor setting technology direction
potential loss of intellectual capital
changing priorities
making the CIO superfluous
Long-term costs of outsourcing may be high because
promised cost savings never materialize
the vendor becomes your sole source over time...no room for negotiating
If an outsourcing contract is based on unit fixed costs, there should eventually be economies of scale.
As an IS employee, it is reasonable for you to expect to be supplied with a computer and software that allows you to perform your job efficiently.
It is not an IS employee's responsibility to apply patches and fixes.
BYOD increases a company's risk of data loss
Outsourcing makes it easy for a company to retain its uniqueness.
Outsourcing often results in a company paying more for the work of their former employees.
