Wendy L. Currie

Analysing four types of IT sourcing decisions in the context of scale, client/supplier interdependency and risk mitigation

The main thrust of the article is to distinguish between four types of IT sourcing decision: total outsourcing; multiple‐supplier sourcing; joint venture/strategic alliance sourcing; and insourcing. To illustrate each type, detailed case histories are used that analyse the reasons why specific IT sourcing decisions were adopted. Here, we consider total outsourcing at the London Stock Exchange; multiple‐supplier sourcing at ICI plc; joint venture project sourcing at CRESTCo Ltd; and insourcing at the Royal Bank of Scotland. The trend towards outsourcing is increasing in all industrial and commercial sectors. However, client organizations need to become more aware of some of the pitfalls, particularly in respect of large‐scale outsourcing deals to single or multiple suppliers. This is because the move to IT outsourcing engenders the need to develop new capabilities and skills to manage complex commercial contracts. We therefore conclude that, while many IT outsourcing contracts followed rationalization, cost‐cutting and disappointing results from in‐house IT provision, short‐termism and current uncertainties over market, business and political conditions pose problems for many organizations in deciding future outsourcing arrangements.

Using multiple suppliers to mitigate the risk of IT outsourcing at ICI and Wessex Water

The paper presents the findings from empirical research on IT outsourcing in two British companies: ICI Plc and Wessex Water. Both organizations have pursued a selective sourcing approach using multiple suppliers in an attempt to minimize risks and maximize benefits. Whilst the majority of existing literature on selective sourcing concentrates on the ‘mega-contracts’, this research explores some of the issues and concerns of companies with small to medium sized outsourcing contracts. The findings suggest that selective and competitive sourcing may offer the client company value-added benefits, although it is important to develop strengths in the areas of contract management and negotiation and competitive benchmarking and performance management.

The New Branch Columbus project at Royal Bank of Scotland: the implementation of large-scale business process re-engineering

Abstract The paper examines the findings from a longitudinal case study on the implementation of a large scale business process re-engineering (BPR) project at the Royal Bank of Scotland. The New Branch Columbus project was conceived to radically restructure the traditional branch banking system. It represented a major organizational, managerial and technical challenge. The research found important barriers impeding BPR at the bank. Many originated with the development and implementation of critical information technologies underpinning the project. The structural separation of the business units and IT division engendered disagreements amongst senior managers and IT staff about the key strategic and operational aims of the Columbus project. Project managers were faced with a control problem in managing permanent and contract technical staff working with the latest client server technology. Senior business and IT managers tended to under-estimate the technical difficulties of interfacing PC based client server technology with the mainframe system. Faced with these challenges, efforts to implement large-scale BPR became diluted in practice.

In Pursuit of the Re‐Engineering Agenda in Public Administration

The article examines the findings from longitudinal case study work conducted in the 1992-96 period in two organizations in the United Kingdom health care and post office sectors. The study highlights the many cultural, political and technical issues that emerge in the strategy and implementation of IT-enabled re-engineering projects. The radical re-engineering perspective and model for change presented by Hammer and Champy (1993) are compared against empirical findings. These suggest that the Hammer and Champy advice contains many limitations. The cases show the specific circumstances in which radical re-engineering can be effective, in managerial terms, but also point to conditions under which a unitary perspective on the organization often cannot address adequately many critical political and cultural issues. Moreover, the case histories point to the dangers of an over reliance on a methodological holism that can rarely be delivered in complex large-scale organizations, given the scale of change envisaged; and the difficulties engendered by over-emphasizing the need for transformation, and ‘starting again’, and downplaying the role of history and continuity in both the study and management of organizational change.

Computerising the Stock Exchange: a comparison of two information systems

Two large scale IS projects are examined using the differentiators of size, technology and structure. They serve to explain the very different outcomes of the Taurus project and Crest equity settlement system and may therefore provide a basis for understanding other IT applications development projects within the financial services sector.

Information technology and radical re-engineering: Emerging issues in major projects

Abstract The paper examines the findings from longitudinal case study work conducted in the 1992–95 period in two organizations in the United Kingdom insurance and health care sectors. The study highlights the many cultural, political, and technical issues that emerge in the strategy and implementation of large-scale radical re-engineering projects. The radical re-engineering perspective and model for change presented by Hammer and Champy (1993) are compared against empirical findings. These suggest that the Hammer and Champy advice contains many limitations. The cases show the specific circumstances in which radical re-engineering can be effective in managerial terms, but also point to conditions under which a unitary perspective on the organization often cannot address adequately many critical political and cultural issues. Moreover the case histories point to (1) the dangers of an over-reliance on a methodological holism that can be rarely delivered on in complex large-scale organizations, given the sc...

Analyzing IT Outsourcing Decisions: Size, Interdependency and Risk

In this chapter we bring together a number of threads running through previous chapters, and focus on distinguishing between four types of IT sourcing decision: total outsourcing; multiple supplier sourcing; joint venture/ project sourcing; and insourcing. To illustrate each type, detailed case histories are used where we analyze the reasons why specific IT sourcing decisions were adopted, and provide comment on the outcomes. Here we consider total outsourcing at the London Stock Exchange; multiple supplier sourcing at ICI pic; joint venture/project sourcing at CRESTCo Ltd; and insourcing at Royal Bank of Scotland.