IT Outsourcing Essay

Todays market place continues to shrink out-of-pocket to computer technologies and communication being at the speed of light. This makes the present of doing product line on a large scale not only realistic just expect. An placement needs implementation of outsource strategy to happen on every level within the bon ton structure in order to function. M whatever factors contribute to a associations mastery or failure. Company is defined by more than just its product or service and the price at which this product or service is sold in the market place.An effective organization has much expertness in its favor to remain competitive. Factors such as flexibility, creativity, openness to use of engineering and innovations, communication crosswise the organization and talented employees atomic number 18 a moldiness for competitive prefer. It is an organizations ability to rig to ever-changing times that effects a foundation for the public to admire. How an organization contin ues to reflect such a picture is spotlessly contingent on so more factors but really it comes down to vision and action. fairness is crucial.Upholding the companys value establishment and word to the public remains a key scene for success. Building any strategy or campaign on this premise presents the trump possible and squ are corporate image to the public and allows for a great amount of practice to variety show. Building character and trust is very important within the financial world but withal the retail forum of wellness products because there has been a backlash imputable to corporate lack of governance and s domiciliatedal but excessively telecommunications is much wish well a double-edged sword. With the wrong image, comes poor press and lack of a scratch line impression.It can make or break the situation. In this respect, outsourcing can be a complex game. In order to intermit go steady customers, it is important one understands how marketing works. This me ans not only having cognition of traditional method actings but also knowing the fundamentals of e-marketing and e- craft. Todays earnings is a gratification for human ingenuity and spontaneous order. In some parts it embodies leading edge technology alike Asynchronous Transfer Mode but really it is the use of natural technologies combined with older ones that makes the inter elucidate so fascinating and vital to occupation.Specifically the network ends distance limitations and it empowers various(prenominal)s in important new shipway to create new enterprise (Gasman, 2005, p. 2). The Internet is relatively vast in its freedom. Unlike the traditional telephone, the Internet is not charged by the mile or any distance. This brings people together. Retailers see the Internet as a marketing tool they can use to target a smaller, regional niche market. i must understand it is in the best interests of companies to make the e-retailing transitions because of the fact that most sh opping now happens online.This is due to the increase in e-commerce and instant need for convenience. E-commerce makes purchasing easier and hot. It fits into the lifestyle of todays 24/7 world where people do not have the time to shop at the mall or pay bills by writing out checks. Statement of the Problem The subject of IT outsourcing and e- ancestry strategy in chinas pharmaceutical industry, its frameworks, convenience and also problems or implications were assessed in this look into. As a result of this study, this seek presented preliminary findings related to IT outsourcing in China.This leads us to looking at how e-strategy and use of the Internet to facilitate outsourcing has created a whole industry of service for the consumer or in some other words, e-services. This required a look at different models to assess strategy and analysis a companys role in the market. calculate of the Study The boilersuit purpose of this paper and study is to investigate the role of IT o utsourcing within a Chinese drug company. This lead to further study of its use within the health industry in China.As growing richness in an organizations competitive advantage and globalisation makes an Internet movement an chance, the right marketing strategy becomes all the more important in a company overall strategy but it also equals power. An organization needs careful research prior to investment but also needs to strategize and ponder if the consumer is worth the profit. This paper will look at how a proactive strategic analysis allows an organization knowledge of the market in order to build a indestructible presence and customer relationships.This paper will also explore the implications of outsourcing. Review of Related Literature discipline Technology is a powerful means that helps organizations meet the challenges of a competitive market environment and neuter the firms to stay ahead of the competition. The study revolution is exerting substantial effects on the structure and functions of organizations. From the beginning of the computer science era various studies have been do that predicted several positive effects ensuing from the implementation of information technology (IT) (Cash & Konsynski, 1986).Many cases have been published, as well as articles in the professional press, which predicted a net increase in business results of companies that invested more in IT (Buday, 1986). However, during the little more than 10 historic period of this research line, contradictory results have been found From the 1970s to 1980s, those companies that invested more in IT suffered a relative setback in the work factor productivity indexes. This paper will discuss the relationship among IT and competitive advantage in following content.We believe that IT is necessary to improve competitive position of the organization. Many business professionals backsheesh to the use and deployment of IT as a point of weakness, not a point of strength in th eir organizations. They recall that the reason for this is often that IT is being driven from a technical perspective, not from a business perspective. This phenomenon exists because many businesspeople think that the IT is too complicated, too expensive, too risky and too changeable. They would not like to dismiss time on understanding the complex information technology management.Most businesspeople only understand how specific technologies affect their ability to do their specific jobs. Poorly understand IT initiatives often end in failure. The previous literatures reveal that IT brings huge rival on careers and information technology has pushed many jobs such as IT has replaced human labor and many organizations no longer pay people to simply oversee others and pass along information. The business benefits that are derived from the strategic use of technology are significant, but they are accompanied by risks that must be addressed.The failure to address IT vulnerabilities within their own organizations and throughout the translate twine can have devastating consequences for business operations. China and Outsourcing To this day, the country of China remains an enigma, insulate from the Western world and shrouded in mystery conceptualized by the Communist Red. Its culture both ancient and red-brick fascinates one on many levels mainly because it is so completely foreign. Aspects of their way of life, customs and lifestyle elements reflect the Communist doctrines and the absence of pure freedom seems sad to Westerners. quiet down slowly China is opening its doors to the West. on that point is a changing tide, a force at work. It is the advent of globalization, mass communication and new technologies that changed the atm of China. The world is forever shrinking due to the marketplace is growing at the speed of light and commerce taking place over new mediums. This makes possibility happen. People from every nation have yearned to enroll in this explosion. The Chinese have been no exception. They have reached a point in their history where they must not only hold on to their cultural identity but also embrace change from outside.This has been the only way to take advantage of globalization and create a new persona for China. Still the seed of change had to grow from somewhere. This transformation did not happen over night. It can be operose and frustrating for one to understand yet try to respect. It is out of understanding what one fears that one can be a catalyst for change. Only then can the barriers come down. Much of the emergence of globalization can be attributed to the world economy. China has made steps of change within recent years and as a result found itself at the forefront of economic explosion.At this time the Chinese economy is growing at the rate of ten percent a year, faster than any other country in the world (Richardson, 2005, p. 1). As a result, the region of the Pacific Rim and more specifically South East Asia is considered an emerging market, one that many international corporations are centreed on gaining a competitive advantage. This industry of health food and vitamins is no exception. Due to vast changes in available technologies, it is expected and imperative that all companies have an Internet presence or utilize a global e-strategy that relates their business practices to evolve into e-commerce.Two Models This project utilizes two models to analyze IT outsourcing. The models are as follows (1) Kurt Lewins Force flying field Analysis theory and (2) SWOT. These two models and others like them assist management and strategists in understanding a companys standing within the market place. By assessing a companys strengths and weaknesses or forces at work within a market or organization, one can have a better idea of which areas need attention.Force Field Analysis TheoryField theories really took the basic form of the fluid mechanics developed in the eighteenth century, i n which equations linked a flow or potential for transmitted force to spatial coordinates, but applied this form to situations where no fluid could be found fonts are motion induced by gravity, electricity, or magnetism. I will follow ecumenic use and employ the term field theory to denote only those theories that do not involve a clearly existent substantial medium. Lewins field theory depicts a method for analyzing causative relations and of building scientific constructs (p. 01) on several psycho accessible concepts involving human actions, emotions, and personality.These psychosocial concepts include human frustration, levels of aspiration, marginality, punishment and reward, and social identity. Lewins field theory is built on two constructs (a) human behavior is derived from a combine of mutually interdependent co-existing facts in the life space of psyches, and (b) these coexisting facts have the characteristics of a dynamic field, because any part of the field depends on every other part of the field (p. 87). Using the analogy of shape space in physics, which represents a multitude of factors that might influence events in open systems, Lewin articulated the importance of psychological space in real life. Lewin reasoned that an individuals life space, including ones personal characteristics and environmental influences, is an inherent part of the individuals total situationmomentary and public life situation as perceived by the individual.He argued that the total situations or fields are more important in studying group behavior because at any given time, individual human behavior, is not only derived from, but is also likely to change, due to the individuals intuition of current situations based on their past cultural orientation, race, status, and experience. To account for such complexities and interdependence of the internal and outside(a) factors affecting individuals, Lewin advocated a middle course.By applying these field theory princi ples to groups in given situations, Lewin observed that it is possible to glean general patterns, underlying relationships, and structural characteristics that can be transposed to other real-world situations. As an example of the field theory principle, Lewin (1997c) advocated the use of a psychological approach to understanding fields that influence individuals and celebrated that a teacher can never succeed in giving proper guidance to a student if she or he does not learn to understand the psychological world in which that individual student lived.This objective description in psychology actually means describing a situation in its totalitya sum total of facts which makes up that individual. SWOT Assessment It is important to determine the impact a strategy will have on the operations and activities of an organization. The objective is to utilize present technologies and coming(prenominal) innovations to plan the future of a company. It is important to allow a flexible framewo rk for strategy to move within the environment.Further the objective is to gain understanding of the surroundings and behaviors under which they are operating. The key is to create an excellent strategy in which to include within the organizational culture. It is best management remains aware of potential challenges and SWOT allows for clarity. IT Infrastructure and the Practice of Outsourcing As the act of doing business becomes more innovative due to new technologies and high levels of communication, it is surprising that doing business become more complicated and expensive.Is it the factor of elevated expectation and competition from global markets, it is a lack of understanding your own formation and its cores? Angelo Mozilo believes that outsourcing creates room for improved focus upon core values and it is with the implementation of high speed communication and data systems that enables people to better interact with each other (2002, par. 3). It allows for context to be pr ocessed outside the core, only to return when needed. Outsourcing is much like a double-edged sword, it can be seen as a negative as much as a positive.Many believe that it is stealing from American jobs to use cheaper labour sources in countries like India. timothy Smith surmises that outsourcing has three functions in making organisations more efficient, effective and reduces costs. Outsourcing enables organisations to reallocate resources (Smith 2001, par. 3). This in turn allows the organisation to spend less time on those tasks, saves it money in labour and location by changing focus from survival to enhancing competitive advantage. An organisation can only do this when it becomes people foc utilise.Truly what IT outsourcing does for the business to supplier to the customer relationship is create a new business process that isolates pieces of IT by restructuring the entire segment of the customers business. This includes value added improvements in the organisational logic of p rocesses, implementation of best-in-class technology, extensive management and employee training as well as adoption of best practices in the vendors field of experience. This whitethorn sound like a lot of both monetary and human resource investment but over the long run such implementation will allow the organisation to focus on core rather than context.It goes to show what many successful CEOs would say, dont sweat the small extort and this motto will take you to the next level of continual learning and success. Exporting organisations are also seeking ways to lower costs while increasing customer service. A relatively new approach is lend chain management (SCM). Supply chain management differs from traditional materials and manufacturing control in several ways (Burn & Hackney, 2003). First, SCM views the supply chain as a single process. Second, SCM requires strategic decision-making due to its impact on overall costs and market share.Third, supply chain management regards in ventories as a tool of last resort. Finally, it requires an mix ind approach to systems. Integration results in reduced inventory and significant cost benefits (Trunick, 2005). The success of SCM usually involves implementation of an information management system. Still the model is evolving to include new innovations being used as tools. The Amorphous type of chain changes as the company introduces new strategies. This type of model best reflects the continuous flow of ideas and possibilities within the e-commerce construct or Internet medium specifically.It helps anticipate future occurrences. This support a companys tracking of Internet use especially when applied to advertising and promotions, as it is known the number of businesses utilising the Internet for e-business purposes was significantly low at 28% though an further 33% were actively considering the implementation (Ritchie & Brindley, 2002, p. 2). The function of procurement within the logistics process is moving to a new scan of sophistication due to new technologies to make the job simpler. Much of it is moving to the platform of the Internet to tap efficiency and productivity.E-Procurement is now moving from easy-to-automate tasks like invoicing generations to more complex concerns such a E-marketplace implementation, operation and electronic collaboration. Literature suggests that currently focus in on technologies that support E-procurement of direct goods that are mission critical. similarly because raw materials that go into production of the finished product many account for 80 percent of a companys expenses, the saving derived from implementing E-procurement is compelling (Thierauf & Hoctor 2003, p. 250).In other words, E-procurement technology offers lower purchase prices to faster fulfilment cycles as well as lower administrative overhead to better control. As a result, companies realise broad, measurable benefits from the implementation of E-procurement. Companies stand to gain e ven more impressive results from coming generations of the technology that includes connecting to trading exchange with their own industries. This also enables a customer better informed purchases as a company learns to manage production on a daily basis. This means the capability for the supply chain to extend beyond customers and suppliers improves.This also improves the ability for the company to communicate with the customer and the supplier. This leads to new ideas and knowledge some the process as companies and suppliers work in a join environment. Sometimes organisations look to outsourcing inventory as a way to cut costs and speed up the process. GHL will find that by utilise the Internet as e-strategy that they can achieve multitasking on new levels, allowing for many lines of communication as once. The Internet will allow GHL to tap into a bigger supply base to ensure dependable supply and backup sources.This in turn will reduce the amount it takes to secure shipment of new products. initiative Resource Planning (ERP) systems are particularly valuable in new product introduction because it acts as a means of sharing information. Enterprise Resource Planning (ERP) systems are software packages that attempt to integrate the information flow within a company, solving the problem of incompatibility between systems and operating practices. The ERP system will streamline the GHLs data flows and provide management with direct access to a wealthiness of real-time information.This is facilitated by the used of database technologies which will link applications together and pass relevant data between them as necessary. Any new information added to one of the system updates the other systems automatically, thus creating complete desegregation between them (Soh, 2002 and Grandt, 2005). Directory services and middle ware are used in order to connect the applications and provide an infrastructure for users to communicate with each other and connect to the sou rces of information. There are many benefits and drawbacks to using this method of data transportation.It is important to analyse rather not this will be good fit for a company like GHL. A key difficulty is that departments distrust the information provided by another department, be it via an information system or some other mechanism. Therefore checking and cleaning the data should be made an integral part of the implementation (Bonner, 2002, par. 5). If ERP is integrated with the organisations decision-making structure, ERP can begin to deliver business benefits, impacting data delivery levels. Still its success can only be measured by the spatial relation of the user.