The complexity and pace of technology, combined
with the strategic importance of technology, has
created a dilemma for most organisations. The
requirement is to be able to take advantage• of the
latest technology and state-of-the-art practices. So,
instead of trying to be experts in both their core
business and technology, executives focus their
attention on the core business and rely on others to
provide the technology expertise.
Healthy and profitable Japanese companies are
beginning to view outsourcing as an essential .part of
their business strategy. They are looking for
outsourcers to deliver key components of data
processing, supply-chain management, warehousing,
logistics, human resources, accounting, and other vital
components of their business. By divesting
themselves of these non-core activities, companies are
realising they can focus their energy on areas where
they have the competitive advantage, differentiate
themselves from their competitors, and take advantage
of the cost-savings from the outsourced functions.
Outsourcing relationships, however, demand the same
care and attention to sound management principles
and practices as in-house operations. Managed well,
continuous improvement, increasing value, and
constant innovation can be expected. Managed
poorly, the services and overall relationship
deteriorates resulting In higher costs, operational
disruption and lost business opportunities.
The dramatic structural and economic changes in the
Japanese finance sector over the past decade have
created opportunities for multinational corporations to
leverage their best practices and economic value
creation into the market.
Japanese multinational information technology
executives in this e-business economy must thus
deliver information technology services and systems
as seen in an environment of changing business
opportunities and challenges, accelerating
technologies, short product delivery cycles and evergrowing
business demands for e-business, ecommerce,
ERP, ASP and other applications.
Like no other time in Japanese history, outsourcing
strategies and practices, and effective relationship
management are critical to business success. Properly
crafted and managed, an outsourcing relationship can
increase flexibility, improve performance and permit a
better focus on core competencies.
To bridge the gap between the ideal state and the
present state as determined by the empirical study, a
SG offshore information processing outsourcing model
is proposed.
The SG model and principles deliver a framework and
structure for outsourced offshore information
processing services to the Japanese finance sector
multinationals.
The SG model supports three different roles within an
organisation, namely as a support to business strategy,
as the implementer of business strategy, and as the
driver of business strategy. / MBA Potchefstroom University for Christian Higher Education, 2001
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/9610 |
| Date | January 2000 |
| Creators | Green, Michael Allan |
| Publisher | Potchefstroom University for Christian Higher Education |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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