Extra subject: IT Outsourcing (ITO) - ITO Software Development VS Infrastructure Management

3 important questions on Extra subject: IT Outsourcing (ITO) - ITO Software Development VS Infrastructure Management

Describe the characteristics of Software Development

  • Application development encapsulates three types of activities:
  1. aimed at creating enhanced functionality
  2. included the integration, detailed design, implement and management service
  3. deployment services provided to support the implementation and rollout of new applications

  • Application development is mainly a project-based activity, resulting in the timely completion of project deliverables at dominant service level

Describe the characteristics of Infrastructure Management

  • Infrastructure management can be defined as preventative and remedial services that physically repair or optimize computing and communications hardware.

– technical troubleshooting and assistance for set-up and all fee-based hardware warranty upgrades.

– telephone and online troubleshooting, installation assistance and basic usability assistance

– operational services, application management services and helpdesk management services are considered part of infrastructure management
  • Infrastructure management in offshore outsourcing relationships consist mainly of continuous services with stable requirements

Give three reasons to explain why IT is a special topic in outsourcing (i.e. purchasing management) (previous exam question)

- Technology uncertainty
- Hidden costs
- ITO remains controversial due to the unforeseeable success or failure

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