Statistican

The following paper outlines HC’s current business challenges, strategic positioning and recommended IT strategy to capitalize on HC’s home country advantages (RATs/CATs), elevate & improve customer responsiveness in growing markets (local/global framework), and optimize the company’s cost structure to remain competitive in the industry (onshore/offshore/outsource model). Our immediate recommendations are for HC to wind down any ongoing projects that they currently have running with an IT development firm and to discontinue using their services. We suggest that HC increase their in-house involvement in their own IT development and build greater capabilities. Furthermore, we find it in HC’s best interest to capitalize on emerging markets, by leveraging their current presence overseas.

Business Challenges

HC faces 5 key business challenges given current and future market trends in the global EPCM industry.

The most immediate challenge facing HC is its relationship with Protek. Although this partnership over time has proven to be effective, the recent acquisition of Protek by a competitor leaves HC in a vulnerable, single-sourced position. HC must immediately address the loss of this key strategic partner, as well as, develop plans to revamp and strengthen its IT sourcing strategy.

Growth of ‘small’, more customized projects is another challenge HC must address. HC’s current IT innovation platform, internal processes and portfolio of services prevent flexibility and adaptability to fit customer needs. Developing a more nimble and agile work structure and IT capabilities is becoming a significant trend, and competitive advantage, in the industry across geographies. Providing more adaptable and integrated systems with tailored training programs will position HC well to grow with current and new clients. Given the importance of agility and customization HC's strategy must address the need to standardize and globalize non-critical business...