MIS 3534 – Prof. Min-Seok Pang

Week 08 – Strategic IT Outsourcing

Online discussion questions – Oct 31

  • In what ways can a relationship between a parent and a tutor go sour? How can a contract prevent or resolve it?
  • What are the other examples of “incentive salaries” for restaurant servers?
  • How would you explain the difference between a distributed denial of service (DDoS) attack and an intrusion to a non-IT boss or colleagues?
  • If an intrusion was indeed occurred and it was the intruder who changed the database index file, why would he/she have done it?

Online discussion questions – Oct 24

  • If you are running a manufacturing company, when/why would you let outside vendors (e.g. UPS, Fedex) handle logistics and delivery to customers?
  • When would you keep delivery/logistics in-house and let your own employees do it?
  • What can you explain about information asymmetry and conflicts of interests in any other contractual relationship that you can think of?
  • What kind of “homework” or research would be needed in selecting an IT outsourcing vendor?
  • What would happen if you did not do enough homework in finding a mechanic, a contractor, or a doctor?
  • How should IVK choose a new vendor among VerxaWeb, ServoLith, and HiOSoft?

Week 8 – IT Adventures Ch. 7 and 14 – Brief Guideline

Chapter 7

  • Why is the Infrastructure Replacement (IR) project failing?

Chapter 14

  • What are the differences between three prospective vendors for the IR project?
  • What are the differences between two contracting models that IVK is considering?

Your report does not need to include

  • “Wednesday, April 28, 10:12 a.m.” (p. 107-109),
  • the consultant’s report (p. 120-122),
  • “the third major disagreement” (p. 226-228),
  • “Monday, October 1, 11:00 a.m.” (p. 228-231), and
  • vendor assessment matrices (p. 233).

But please DO NOT SKIP to read them.

In-class discussion questions – Week 8 (Oct 24)

  • Do you fix your car by yourself or have a mechanic do maintenance? Why?
  • How do you choose your mechanic? Based on what?
  • Why does Apple outsource the entire manufacturing operations to offshore vendors?
  • Why would a company outsource IT operation and development to an external vendor?
  • What would be the reasons that Otis DID NOT outsource the development of e*Logistics?
  • What’s a doctor-patient confidentiality?
  • What is the Infrastructure Replacement (IR) project for at IVK?
  • Why is this project not going well?
  • Why did IVK select NetiFects for the IR project vendor?
  • When selecting NetiFects, what homework did IVK do?
  • How do you choose your mechanic? Based on what?
  • If you did not do “due diligence” in finding an outsourcing vendor, what would happen to you?
  • What would be your choice among the three vendors in Ch. 14?