Fix must enhance its creativity and innovativeness so as to be more competitive within the marketplace as well as strengthen its organizational core competencies. The company has three alternatives to consider and these include retention of the current system, outsourcing services from other providers, and contracting IT services to a third party. Currently, Fix channels a lot of resources towards maintaining its email and instant messaging systems.
Some of the huge costs incurred include the resources spent on hiring IT staff, maintaining the mail server, and investing in upgrades or maintenance costs which add up to high costs that could be diverted to other core areas or even saved up.
The company lacks the expertise and resources to monitor its systems on a 24 hour basis and neutralize any potential security threats. Other organizations that specialize in these areas are more capable of handling these challenges because they are placed to monitor email traffic and have higher capacity to handle increased traffic and provide viable network contingencies.
Fix should focus on its core competencies in the manufacturing sector and outsource the email and instant messaging services to a capable and competent third party. The third party will provide the email and instant messaging applications through the cloud technology. This alternative is considered the best because it allows Fix to exercise a lot of flexibility in terms of handling traffic fluctuations and enhances the ease of access to the applications by stakeholders in different locations, using any devices, and at the time of their own convenience.
The vendor is thus responsible for adjusting the capacity of the services according to the demand, and hence can increase capacity with increasing traffic.
Fix, on the other hand, will be able to concentrate more on its core business. The chosen vendor has vast experience in this particular industry and has amassed sophisticated expertise and knowledge hence is capable of providing quality service to Fix.
Having achieved economies of scale, the vendor will be able to pass on cost saving services and techniques to its clients, Fix included. The recommendation to select a third party vendor was based on the premise that Fix relies heavily on email and instant messaging to carry out most of its businesses. However, the ever changing trends in technology necessitate the need for the company to delegate and offload any extraneous functions to capable and competent third parties that can readily avail required services.
This will allow Fix to focus on its main business and core competencies in the manufacturing sector. Despite its potential benefits, outsourcing any services or applications can pose potential risks in Fix Manufacturing Company. The managerial team at the company must thus ensure that the regulatory factors regarding governance and control are clearly spelled out to vendors that are hired to provide cloud services for e-mail and instant messaging on behalf of the company. Some of the end results of a successful or effective outsourcing contract will be depicted by excellent performance of the applications, growth of infrastructure, cost effectiveness and sustainability.
Djavanshir lists the following five concerns that companies should beware of when outsourcing information systems:. One of the dangers and major concerns of outsourcing e-mail services is keeping control of the whole process including filtering what goes in and comes out.
The outsourcing company is in charge of choosing the location that will be most optimal and functional hence must ensure at the transferred e-mail data are in a centralized location Baker, The option for outsourcing the e-mail means that the service will be provided via cloud and this approach may become an obstacle in the exchange of data, and hence may have adverse effects in varied departments of Fix.
Nevertheless these potential risks and challenges are outweighed by the foregoing advantages of outsourcing these services. In order to reap all the benefits of outsourcing, it is recommended that Fix contracts the services of AliComp outsourcing solutions. AliComp outsourcing offers a variety of outsourcing services that have been specifically designed to cut costs and improve services in the IT sector as depicted in Table 1 AliComp. Alternatively, Fix has the option of retaining the existing in-house systems.
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