When selecting which option best fits the situation at hand,
I require one paragraph per below:
Posting 1 with require references:
Explain the various options available sourcing and the decision criteria used by IT managers when selecting these options.
Discussion Reply 1
The various options available sourcing and the decision criteria used by IT managers are In-house, In source, Outsource, and Partnership. When selecting these options, IT Managers will need to determine the group’s assessment of what the specific IT functions and sourcing are.
Smith, J.D.M.H. A. (2019). IT Strategy: Issues and Practices. IT Sourcing options. Chapter 8 (pp 106).
Discussion Reply 2
As written in the text, there are 4 different sourcing options for IT functions:
1) In-House: This refers to permanent IT staff providing the function
2) Insource: Insourcing is when external IT personnel are brought in to provide supplemental support for existing permanent IT staff
3) Outsource: Outsourcing refers to an external organization providing IT functions with their own staff and resources
4) Partnership: IT functions are completed in concert with another organization, either through a joint venture or through the creation of a new and separate entity.
When selecting which option best fits the situation at hand, IT managers often will make the decision based on the following criteria:
Flexibility: Flexibility is considered in two dimensions; response time and capability. Response time refers to the time it will take for an IT function to be delivered. Capability refers to the range of IT functionality. In-house IT staff generally rate high on high on both dimensions, and while outsourcing can theoretically provide sourcing options for just about anything, it exhibits less flexibility because of the need to locate a vendor to provide the function, in addition to the contract negotiations. Additionally, although partnerships offer flexibility, they lack the fast response time that is often requisite.
Control: Like flexibility, control also is considered in two dimensions: delivery and security. Delivery ensures the IT function complies with requirements, and security protects intellectual property. Due to the high level of delivery and control offered by in-house and insourcing, these two sourcing options tend to be favored when work is proprietary and strategic.
Knowledge Enhancement: Knowledge enhancement refers to both knowledge development and knowledge retention. While there is debate about which sourcing option is ideal for knowledge enhancement, insourcing seems to ensure that the proper personnel are involved while the knowledge of the function remains internal. External personnel can be brought in as support to complete the function itself, or simple to train internal staff on how to do the work.
Business Exigency: Business exigency refers to the response to unforeseen business opportunities. Businesses which can respond do, and the decisions are often not governed by the standard planning and budgeting processes, but rather by urgency and a need to seize the opportunity. As such, the sourcing option which can produce the quickest result is often selected.
McKeen, J. D., Smith, H. A. (2019). IT Strategy: Issues and Practices, 3rd Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9780135822272
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