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Outsourcing has become a routine part of management, yet it remains far from easy. In general, the concept of using external organisations (whether domestic or offshore) is considered an efficient and logical way to get things done, and is indeed widely accepted in many sectors of the economy. However, the learning curve is significant, it involves considerable hard work by both parties on a daily basis, and the results are highly dependent on the capabilities of the organisations involved. This subject focuses on the crucial activities that make a difference between success and disappointment.
Students who have a weighted average mark of at least 75% in the Master of Information Systems have the option to complete the on-line Advanced Elective ISYS90092 Outsourcing and Contracting instead of ISYS90055 Managing IT Outsourcing.
This subject provides an overview of both the theory and practice of managing outsourcing throughout the lifecycle.
Topics discussed are:
- Architect Phase: Deciding what and how to outsource. Designing a deal, developing a Contract Scorecard, Service Level Agreements and Key
- Performance Indicators, pricing, and the contract
- Engage Phase: Competitive bidding, choosing supplier/s, negotiation, due diligence
- Operate Phase: Mobilisation, governance and contract management, relationship management
- Refresh Phase: Disengagement (exit), next generation planning.
This subject has an enrolment quota of 60 students and therefore places are limited. The quota will be managed based on student performance using their WAM with preference given to Master of Information Systems students for the first 40 places. The remaining places will be made available to students in other Masters Degrees as well as Information Systems, again based on student performance using their WAM.
Intended learning outcomes
On completion of this subject the student is expected to:
- Describe a range of managerial issues regarding outsourcing
- Explain the 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
- Recognise personal negotiation styles and how that influences approaches to outsourcing as well as results
- Empathise with challenges facing both purchasers and providers and form pragmatic solutions
- Independently research and argue disparate beliefs/theories of outsourcing
On completion of this subject, students should have developed the following generic skills:
- Logic, practical long-term thinking
- Results-orientated and economic-effect cognition
- As well as writing and presentation
Last updated: 29 July 2022