Management Information Systems

Management Information System

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In latest years, firms have taken on outsourcing as a way of managing their IT operations (Kliem, 2004). Firms outsource so as to enjoy benefits like reduced costs, advanced quality of services, better flexibility and easy accessibility to new technology. However, there are various reasons that have undermined their success. Organisations face challenges in the management of IT outsourcing (Herath and Kishore, 2009). Nonetheless, there are solutions to these challenges that ensure the success of offshore outsourcing. Applying vertical and horizontal chunkification decreases threats of knowledge leaks and risks of opportunistic renegotiation (Lee, 2001). Firms should choose Contract according to the needs of the firm and their outcome expectations. So as to have total understanding of the technologies used, they should have up to date information on technology environment and understand the different technologies different vendors offer. They should also invest in decision making tools so that they can evaluate and select an appropriate vendor who matches their clientele scope (Lacity, 1995).

A request for proposal (RFP) is the formal invitation sent to vendors inviting them to submit a proposal illustrating how their services, equipment or merchandise can attend to the needs of the institution(Coons, 2012).Normally, it is carried out in a bidding process and is submitted in the early stages of procurement. An RFP should not be used to get information from suppliers on the basis of pricing information; it should be used in complex projects that deserve a proposal from the vendors (Coons, 2012). The RFP lays out requirements that a supplier should comply to, describes terms of the contract. It is valuable when an institution requires a supplier know how and innovativeness to approach certain problems. The...