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22 Cards in this Set
- Front
- Back
Insourcing
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when a firm provides IS services or develops IS in its own in-house IS organization. This is a make decision
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Outsourcing
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The purchase of a good or service that previously was or could be provided internally but is now provided by outside vendors
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3 major decisions to outsource
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Selection, contracting, and scop
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Selection
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Focuses on finding compatible providers whose capabilities, managers, internal operations, and culture complement those of the client.
Compatibility and cultural fit may trump price. |
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Contracting
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Many “how” decisions center around the outsourcing contract.
Ensure that contract terms allow flexibility to manage and, if necessary, sever supplier relationships. |
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Service Level agreements
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define the level of service between the clients and providers
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Scope
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Client must decide whether to pursue outsourcing fully or selectively.
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Private clouds
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Data is managed by the company and remains in the company's existing infrastructure, or it is managed offsite by a third party
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Community clouds
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the cloud infrastructure is shared by several organizations and supports the shared concerns of a specific community
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Public clouds
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Data is stored outside of the corporate data centers in the cloud provider's environment
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Hybrid clouds
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Combination of two or more clouds
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Infrastructure as a Service (IaaS)
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Provides infrastructure through grids or clusters or virtualized servers, networks, storage, and systems software. Designed to augment or replace the functions of an entire data center
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Platform as a Service (PaaS)
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Provides services using virtualized servers on which clients can run existing applications or develop new ones without having to worry about maintaining the operating systems, server hardware, load balancing, or computing capacity. Provider manages the hardware and underlying operating system. Limits the enterprise risk management capabilities.
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Software as a Service (SaaS) or Application Service Provider (ASP)
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Software application functionality through a web browser.
The platform and infrastructure are fully managed by the cloud provider. If the operating system or underlying service isn’t configured correctly, the data at the higher application layer may be at risk. The most widely known and used form of cloud computing |
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Onshoring or inshoring
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performing outsourcing work domestically
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Offshoring
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the IS organization uses contractor services or even builds its own data center in a distant land
alternative is captive center |
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Farshoring
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a form of offshoring that involves sourcing service work to a foreign, lower wage country that is relatively far away in distance or a time zone or both.
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Nearshoring
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is when work is sourced to a foreign, lower wage country that is relatively close in distance or time zone
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Captive Centers
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an overseas subsidiary that is set up to serve the parent company. operate like an outsourcing provider but are owned by the firm
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Hybrid and shared captive center
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performs the more expensive , higher profile or mission critical work for the parent company
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Backsourcing
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a business practice in which a company takes back in-house assets, activities, and skills that were part of its IS operations and were previously outsourced to one or more outside providers.
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strategic network
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a long-term, purposeful arrangement by which companies set up a web of close relationships that provide a product or service in a coordinated fashion
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