Alignment Between Business and It Essay

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Place less importance on quality of service as a constraint, most marketplace decisions are outside this issue.

Arrangement -- is this long-term or short-term? Why? Outsourcing is a relationship, not just a contract.

Follow up -- What mutual measurements will be made to ensure a win-win scenario? What visions for the future (especially in it) are strategically aligned for both organizations? (Khosrow-Pour, 2006, 131).

5. Describe remedies for poor performance that might be included in an outsourcing arrangement. Sometimes, performance is neglected when outsourcing and used as an excuse rather than a business opportunity. Upfront standards of expectations and measurement of those expectations is essential within any outsourcing relationship -- this is done by establishing clear, concise, and measurable performance standards and metrics. Performance standards should be equal to or better than what is being provided prior to outsourcing. Contractual arrangements and regular benchmarks to measure this performance are essential, with a written guideline of the penalties for non-performance or lack of established performance goals.

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The most typical remedies for poor outsourcing performance are fiscal. This might be reflected in warranties under specific guidelines and obligations within the initial contract. For instance:

The supplier has sufficient resource capacity to provide a contracted service, but fails to do so.

Supplier representatives will be suitably skilled and qualified, but one finds this is not true.

The services will be carried out using reasonable skill and care, but we find shoddy workmanship.

Services will be provided in compliance with laws, statues and regulations, but we find the supplier breaks laws.

Each of these could result in a breach of contract and/or failure to perform duties. This underlines the importance of clear performance metrics so that if the desired results are not received, there are procedures in place within the contracts to review, revise, or terminate the relationship (White and James, 1996, 92)......

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