Outsourcing and Escalation Issues in VLITPs

Outsourcing and Escalation Issues in VLITPs

Matthew Guah (Erasmus School of Economics, The Netherlands)
Copyright: © 2009 |Pages: 16
DOI: 10.4018/978-1-59904-546-7.ch011
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Abstract

VLITP escalation has been documented to be a widespread phenomenon in the 21st century. Nearly every research in this area has portrayed escalation as an irrational decision-making process whereby additional resources are plowed into a failing project. This chapter examines the possibility that some of these escalation issues could be appropriately managed by avoiding irrational actions and rationally responding to various situations that may occur in a VLITP. Later on in the chapter, the author disperses popular belief that VLITP outsourcing is in the nature of partnership and strategic alliances. It exposes that VLITP outsourcing vendors do not share the same profit motives as the host organization who is meant to enjoy the benefits of the VLITP and therefore baring the full cost of the implementation. It further suggests that a tight contract is the only mechanism to ensure that expectations of the host organization are met. Host organizations must negotiate and agree that the contract contains a number key issues including a successful outsourcing relationship between the host organization and the outsourcing vendor.
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Possible Problems With Vlitp Outsourcing

When a host organization is reviewing a potential outsourcing contract involving a VLITP, few issues of potential problems should be investigated. The first issue of contention is usually making sure the organization (and not the outsourcing vendor) will end up owning the source code of any IT application resulting from the VLITP (Johnson, 1995). The contract must be flexible enough that the service being outsourced can change as the business changes (Mahnke et al, 2008). The project champion should be able to answer these simple questions:

  • Is there a system set up to gauge the success of this VLITP?

  • Is there a clearly defined—preferably one—person established as the liaison and can that person speak the language where the work is being done?

Complete Chapter List

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Table of Contents
Foreword
Leslie Willcocks
Acknowledgment
Chapter 1
Matthew Guah
This chapter classifies the purpose of project management in IT projects as a means of introducing the topics covered in the book and demonstrates... Sample PDF
Introduction to Very Large IT Projects
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Chapter 2
Matthew Guah
By examining the history of what was earlier considered project management, this chapter not only points out lessons from past practices but also... Sample PDF
The Field of Project Management
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Chapter 3
Matthew Guah
The basis upon which the objectives and policies for managing a VLITP are formulated is the need to achieve the project objectives on time and under... Sample PDF
Why Implement Very Large IT Projects
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Chapter 4
Matthew Guah
Different VLITP methodologies are capable of solving various types of problems during a project life cycle. This chapter shows that effect of VLITP... Sample PDF
Methodologies for Implementing VLITPs
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Chapter 5
IT Governance  (pages 69-83)
Matthew Guah
VLITP managers face unprecedented expectations for their governance. These expectations are driven by mandates and other demands from host... Sample PDF
IT Governance
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Chapter 6
IT Security  (pages 84-95)
Matthew Guah
One area that has scarcely received attention in the IT security literature, is the role that individual compliance plays in preventing... Sample PDF
IT Security
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Chapter 7
Matthew Guah
The study of diffusion, adoption, and IT project implementation in popular literature relies on theories which do not address the question of why... Sample PDF
Human Resource Issues in VLITP
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Chapter 8
Matthew Guah
Medical accidents, such as those that occur as a consequence of errors in medical systems, rarely happen because of a single failure. They are... Sample PDF
Ergonomics of Very Large IT Projects
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Chapter 9
Matthew Guah
For centuries, organizations have been trying to exchange information between their applications by linking them together. However, such application... Sample PDF
Service-Oriented Architecture: A New Platform for Very Large IT Projects
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Chapter 10
Matthew Guah
The chapter seeks to advance the practice perspective of VLITP by drawing attention to individual, collective sub-teams and host organizational... Sample PDF
Business Process Management
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Chapter 11
Matthew Guah
VLITP escalation has been documented to be a widespread phenomenon in the 21st century. Nearly every research in this area has portrayed escalation... Sample PDF
Outsourcing and Escalation Issues in VLITPs
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Chapter 12
Matthew Guah
The traditional way to achieve the automatic execution of project management processes is to develop or purchase an application that executes the... Sample PDF
VLITP Management Framework
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Chapter 13
Matthew Guah
The National Programme for Information Technology is the largest civil IT program worldwide at an estimated cost of £6.2 bn, US$ 10 billion, over a... Sample PDF
Case Study I: National Program for IT
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Chapter 14
Matthew Guah
VLITP can shift the direction of organizations by introducing new systems and emerging technologies that can serve as a trigger for change to the... Sample PDF
Case Study II: RFID—A Technology for Enterprise Systems in the Airlines Industry
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Chapter 15
Matthew Guah
Prediction markets have proven high forecasting performance in many areas such as politics, sports, and business-related fields, compared to... Sample PDF
Case Study III: VLITP in Public Transport— Implementing OV-Chipcard in The Netherlands
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About the Author