Managing IT Outsourcing

This subject has the following teaching availabilities in 2012:

Lectures

10 hours per week, 120 hours in total

Students who are enrolled in the two year 200 point Master of Information Systems must have completed 50 points of study to enrol in this subject.

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject provides a practical set of principles, tools and techniques for client organizations to follow when managing ICT outsourcing. Topics discussed are as follows:

1. Architect Phase 1: Deciding why, what and how to outsource.
2. Architect Phase 2: Design of a deal including the contract, scorecard, Service Level Agreements and KPIs.
3. Engage Phase: Choosing supplier/s, competitive bidding, negotiation.
4. Operate Phase: Mobilisation, contract management, governance, relationship management.
5. Regenerate Phase: Disengagement/exit (types and planning), next generation options.

Upon completion of this subject, students should be able to perform effectively in an ICT contract management role and be able to:

• describe a range of managerial issues regarding outsourcing;
• explain the outsourcing lifecycle and corresponding ebbs and flows of bargaining power;
• understand the practical difficulties and realistic success strategies for outsourcing;
• justify decisions in what and how to outsource IT;
• recognize personal negotiation styles and how that influences approaches to outsourcing as well as results;
• demonstrate a practical ability to write specifications to a commercial standard expected of an employer;
• independently research and argue disparate beliefs/theories of outsourcing;
• empathise with challenges facing both outsourcing customers and providers and form pragmatic solutions.

A 2000 word report and critique in the first half of semester (10% each for 20%), a 4000 word report and presentation in the second half of semester (25% each for 50%), and a 2-hour written exam in the examination period (30%).

Cullen, S. and Willcocks, L.P. Intelligent IT Outsourcing: Eight Building Blocks to Success, Butterworth-Heinemann, 2003.

This subject is not available as a breadth subject.

Students should have honed their generic skills such as clear thinking, improved reading and writing, enhanced ability to work in a team and presentation skills.