Outsourcing Information Technology at Xerox - Case Analysis.
Key Events Leading to Xerox's Decision to Outsource IT.
Our Opinion of Xerox's Decision .
How Management Can Evaluate the Necessity of Outsourcing.
Challenges to Management.
Conclusion.
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Executive Summary.
RE: Case Analysis, "Outsourcing IT at Xerox".
Introduction.
This report analyzes Xerox's multi-billion dollar decision to outsource IT operations to Electronic Data Systems (EDS.).
Key Events Leading to Xerox's Decision to Outsource IT.
A variety of financial and operational considerations played a key role in Xerox's decision to outsource. These factors were mainly associated with saving time and money, as well as with improving Xerox's access to world-class technology while freeing the company to focus on core competencies.
Our Opinion of Xerox's Decision.
While we agree with Xerox's decision to outsource IT operations, we feel that if the company were ours, we would have taken more decisive action earlier in the process, when first notified of the monetary and functional problems within the IT operation.
How Management Can Evaluate the Necessity of Outsourcing.
Management at Xerox should take a flowchart type approach in evaluating the pros and cons of outsourcing IT. By asking a series of questions, starting with generalizations such as "Does the system work as-is?" and progressing to finer points of contention, especially in weighing costs and benefits of outsourcing versus other options, Xerox's management can see and understand which course of action will provide the most benefits both now and in the long run.
Challenges to Management.
Xerox's management must address some very real concerns in order for the outsourcing arrangement to be successful. Ensuring that all employees understand both the need for and the ramifications of the process are vital to preserve employee morale and loyalty. Other factors, such as global thinking in the implementation of the project, establishing a spirit of teamwork and partnership among all members of both companies and maintaining clear and open lines of communication are also key factors in the long-term success of the relationship.
Xerox who was the leader and giant in the copier industry is now failing Michael Hiltzik provides an account of how Xerox started. ... Xerox procedures start with its fondness for paper. Hiltzik gives an account of how Xerox operated procedurally. ... Xerox is cash strapped and desperately dodging bankruptcy. ... Xerox needs to get more out of its technology. ...
Next, several financial issues can make outsourcing appealing. ... THE BENEFITS FROM OUTSOURCING Outsourcing has identified numerous potential benefits. ... THE PROCESS OF OUTSOURCING There are many ways to manage IT outsourcing since every company has different culture, strategy, structure, people, and process. ... However, I"m here going to use Xerox's outsourcing process. ... THE PROBEMS IN OUTSOURCING Many outsourcing contracts are structured for very long periods in a world of fast-moving technical and business change. ...
Mike Johnson (1997) maintains outsourcing isn't a new idea. ... Outsourcing has fostered the concept ofcore? ... their organisations, have championed the concept of outsourcing (Klepper 1998). ... A mere handful of outsourcing success stories includes Xerox, IBM, Whitbread, Tripac International, BP, Avis Rent-a-Car, and Mambo. Xerox paid EDS over $3 billion in 1995 to manage the majority of its computer operations worldwide because they wanted to be certain of keeping up with theIT boom? ...
Introduction Any organization in business cannot afford to stand still. It must improve its ability to deliver higher quality goods and services at competitive prices or it will go out of existence. This trend has resulted in emergence of World Class Organizations (WCOs), in which enterprises can compete effectively on a global basis. This does not mean the organization has to do business in an international level. However, if a Multi National Enterprise (MNE) sets up operation locally, the WCO must be able to compete effectively or if it is a supplier, it must make a competitive bid to suppl...
Today, companies like Xerox, Eastman Kodak, Mobil, Home Depot, and Ethan Allen Furniture - to name just a few - have recycling programs that meet the needs of their individual industries. ... A solution for many companies that have limited resources for reverse logistics is outsourcing that function to third parties or transportation companies. ... As with any outsourcing decision, it's a matter of being able to focus on your core competencies and freeing up your people to work on products rather than expend your assets on [reverse logistics], suggests Brett Chyatte, senior marketing spec...
