¶ … Business Categories of risk associated with sourcing of IT/IS services

Performance Risk

Delays at third parties may lead to a decline in end customer performance levels and timely delivery. As a product/service is outsourced, this risk gets heightened severely. Several factors can cause delays such as factors that are not within the outsourcing company's control. For instance, delays at the port/custom, weather, labor disputes, and political crisis. More severe examples are delays caused by terrorist activities and uncertainties and interruptions from outbreaks of deadly and contagious diseases like SARS or Ebola. As variability and lead-time increase, the need for greater stock levels and all other expensive buffers also increases, whereas generally, supply chain confidence reduces.

Operational Risk

Also, the outsourcing alteration phase may not succeed if budgets and schedules are not actualized as a result of lack of resources or adequate planning. It is possible to run an outsourcing using the same planning and discipline as an implementation for an efficiently-run large-scale system. Outsourcing is all about replacing service or production functions, and such functions have direct effects on the ability of the company to meet every of its responsibilities to shareholders and customers. The quality of products or services can equally be affected during outsourcing, which in turn affects the satisfaction of the customers. Companies are expected to be careful in selecting, qualifying, contracting with, and effectively working with their outsourcing partners to make sure there is no deterioration of quality. This mostly requires effective periods of transition or parallel manufacturing as well as efficient cross-training among different companies. Cost savings efforts are often responsible for the neglect of these aspects.

Financial Risk

It is possible that the suppliers are not financially stable, which puts the company at the risk of supply interruptions. Unpredictably, the financial stability effectiveness basis scored a much lower mark below the others in the results from the survey, which indicates that a large number of companies stand the risk of facing supply interruptions or other related problems due to the lack of financial resources on the side of the supplier (O'Keeffe & Vanlandingham, 2004).

2a. Why Organizations Outsource IT/IS Activities

Need for Specialized Capability from a Supplier

More companies are beginning to realize that outsourcing some decisions should be tied directly to business strategy as well as good knowledge of major competencies. Third-party suppliers are also able to raise the entire value chain performance once every participant in that chain has the right understanding and pays attention to their individual major competencies. Major competencies can equally involve abilities like technical innovation or rapid flexibility/response. The production industry most times graded the need for special ability from suppliers to be a bit lower than every other option. Most often, functional management graded the need for special ability from the suppliers as very vital. Companies whose revenues ranged between $500M and $1B graded special supplier abilities as more essential than every other company.

Maximize Restructuring Benefits

When the company is restructured to increase quality, costs, speed, or service, business functions that are not regarded as core may be pushed aside. However, they still require handling, and outsourcing is the best way to do this.

2b. Why organizations might choose to keep all IT/IS activities in house.

It is difficult to outsource certain IT functions. The effects of IT are felt all over the organization, from the daily simple tasks done by employees to complex automated tasks. Therefore, these are very essential systems for which the company may make such functions in-house. This is as a result of the risk of losing control. An outside salesperson may not be as efficient as the full-time company worker who is under the same administration with every other employee. Other concerns are data confidentiality and recovery. However, there will be the need for a supervisor with the knowledge of how to handle IT staff members.

It is possible for organizations to get locked in. Once the vendor fails to get their work documented on the company system or network, or if the firm is forced to buy their proprietary software, it is easy for them to end up feeling like they can't possibly go anywhere else or take its network back. Most outsourced companies need organizations to sign yearly contract, which places a limitation on their flexibility (CCS, 2016).

3, Criteria used to identify articles as being authoritative in academic terms

What qualifications does the author have? Academic authors are expected to emerge from institutes or universities, and a university press often handles the publication of each academic writing work.

Are all the sources mentioned? Search for a reference list of bibliography.

Is the writing...

Why it is important to make the distinction of authoritativeness among informational articles.
Assessing information sources is a vital aspect of the whole research process. Some information is unreliable as it is untrue, and not all information will suit a project or paper. There is a vast variation between Print and Internet sources when it comes to accuracy, authority, currency, coverage, and objectivity. Users are expected to carry out a critical assessment of the suitability of every type of information source before making use of such information. Therefore, identifying the writer's expertise and qualification becomes very important. A source from an author who is an established authority in a particular field is most likely to be more reliable (although it is wrong to blindly accept expertise).

4. How time-based services differ from project-based sourcing.

Not being able to arrange a highly skilled workforce, finances or substructure to back the organization's problems cannot be considered a barrier any longer to acquire organizational goals devoid of the problem of dealing with the necessary logistics, particularly in case the organization requires deployment of specific skills for a specific time-period devoid of the need requirement to have those skills permanently designated to its system or perhaps not being of perpetual requirement to the organizational goals. This has been a situation of time centered sourcing. Instances of these services include legal counsel as well as IT services

Project centered services are services that are sourced by the organization often for a specific number of weeks or months until the project is finished. The services may or may not be domiciled at a location, use organizational equipment, or work full time on the project.

5a Reasons why ERP implementations fail

Setting impractical expectations originally

Failure to Deal with Organizational Transformation

Not Including Important Stakeholders

Low-Level Project Management Skills

5b.

Setting impractical expectations originally

Most projects are started with the anticipation and enthusiasm of success and triumph. However, for success to be achieved, it is important for details that may not be needed until towards the concluding part of the paper to be planned out. At the start of any large, promising project, what people experience is lots of excitement about the advantages it will ultimately bring to the company-bottom-line savings, stream-lined processes, more efficiency, top line growth, better customer satisfaction, and reduced waste. The problem comes up when the hurry up and get things done approach is adopted.

When properly done, ERP will and can transform a business by re-engineering and automating its heartbeat: the business process. Therefore, it is in the firm's best interest to take time and learn how the business truly runs; most importantly, if the firm has utilized a lot of M&A for growth over the years. Understanding the amount of resources, the project will gulp is also of critical importance. Gaining full knowledge of factors such as allocation of resources, time-to-cost value, change management, cost, employee training, and adoption, all get down-played to favor the supposed benefits brought about by the software. To prevent these during the project description and project initiation stage, do the following;

Develop a personal benchmark; avoid relying on the vendor's benchmark. Vendors are able to provide templates that can help an organization go far with the project, but not any farther than that. Organizations have to decide what they believe are success and failure, progress and setbacks, delivery deadlines and must-haves, the as-is state vs. real to-be state constitutes.

Define every aspect of the business process beforehand. Never allow the software to define the business processes. Most companies make the mistake of not knowing anything about their business processes practically until they suddenly discover they have lost all the problem solving and expediting knowledge.

Failure to Deal with Organizational Transformation

Inadequate attention to company change management, communications and ERP

These activities were seen by most companies as activities that are both optional and nice to have. But, these became critical necessities as these companies realize the hard way. As known by everyone, change is the only constant factor in life. So that knowledge, when accompanied…