Examine the Strengths and Weaknesses of Outsourcing

1. What is your organization size? (Required)

< 250 employees    <1000 employees    >1000    + employees

2. What is your company's annual IT budget? (Required)

Unsure    less than £100,000    £100,000-£999,999    £1 million +

3. Does your organization operate any outsource services at present? (Required)

Yes    No

4. Approximately what percentage of your IT department is outsourced?

1-49%    50-99%    100%

5. Who authorizes your IT departments strategic decision?

Board of directors    CEO    CIO    General Manager

Do you feel:

agree agree slightly disagree totally disagree

6. Outsourcing is a viable strategy

7. Outsourcing is a good option

8. Outsourcing is difficult

9. Are there any of the following IT elements which are outsourced in your IT department? (Please tick as many as appropriate)

Entire IT function    Application development    Networks    Data centre    Microcomputers    Software maintenance and support    Hardware maintenance and support    Development and integration    Consulting    Education and training    Business process and transaction management

10. What rationality do you think is necessary for your IT department to consider outsourcing?

Budget concerns    Survival    Need of business restructure    Need for special skills/services    Lack of in-house expertise    Improve company focus    Difficulty hiring and retaining IT employees    Quality improvement    Share skills

11. What are the key strategic reasons why your IT department have outsourced/may outsource its IT activities?

To reduce operational costs/cost discipline    To improve services quality    Gain access to specialist IT skills    Access to large economies of scale    Better ability to respond to business change    To be free to focus on core business    Reduced risk    Reductions in headcount    Achieve best practice    To gain access to advanced technology    To align IT and business goals    Restructure and downsizing    Career opportunities

12. What is the key threat public sector companies should consider when outsourcing IT department functions?

People problems    Industrial action    Security    Inadequacy of supplier    Suppliers limited knowledge on the organisations ethos    Time consumption of vendor procurement

13. Which is the most severe disadvantage as a result from an outsourcing decision?

Disgruntled employees    Staff morale    Loss of in-house expertise    Difficulties to bring back in-house staff    Contract violation    Loss of control    Impending charges

14. What is/would be the impact on the internal IT employees?

Transfer of staff to supplier    No significant HR implications    Redeployment with no change to employment conditions    Mix of HR strategies    Redundancies    Redeployment with new terms of employment    Career opportunities

15. What is the importance of the decision to outsource for your It department?

Adhere to CPA/ WIP (Wales)    Allow for Private Finance Initiative    Commodity product/service    Be supported by mature technology    Allow for capital investment    Strategy

16. . Was or is your outsourcing venture successful?

Yes    No

17. Are you satisfied with the outsourcing being conducted in your IT department?

Very Helpful    Helpful    Not Very Helpful    Confusing    Totally Useless

18. How do you measure / manage a contract?

Quality controls    Formal review    Service Level Agreements (SLA    Performance    Monthly appraisals    None    Other