Supplier-Managed IT Services Outsourcing: When Is It Worthwhile?

This is a presentation of joint work with Dr. Rafiq Dossani, Shorenstein APARC. About the Talk: IT (Information Technology) outsourcing has become a standard approach for many Fortune 3000 and smaller companies to achieve cost-effectiveness. However, while outsourcing at the low end of the value chain has gained acceptance, many issues remain unresolved at the high end of the IT value chain. We develop a characterization of outsourcing firms, suppliers, and tasks that is useful in providing guidelines on when to outsource, and whom to outsource to. These guidelines for IT outsourcing strategies are based on a study of US customers, and Indian IT suppliers, involving questionnaires and interviews. To our knowledge, this is first study that has captured the supplier characteristics in the level of detail, which will be discussed by Dr. Akella in his talk. Professor Ram Akella is currently professor of IE and Management, and was the founding director, SUNY Center for Excellence in Global Enterprise Management. At Stanford, the University of California, Berkeley, and Carnegie Mellon University, as a faculty member and director, Professor Akella has led major multi-million dollar interdisciplinary team efforts in high tech and semiconductors. His current research interests include in process learning, quality, fab economic models, cost of ownership and financial justification for IT Management and equipment, production planning and control, and bio-informatics. His other interests are enterprise systems, IT and software, financial engineering, high tech and e-business, and range from cell and factory level design and control to enterprise-wide coordination and logistics, including supply chain management and contracts, financial engineering and investment, demand management, e-commerce and e-business exchanges, and product and process portfolios for risk management and design capacity management.