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Actividad A4. Study Case

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Principles of operations

management

Name student:
David Padilla Acosta.
125633

Profesor:
Miguel Angel Maldonado Miranda

Actividad A4. Study case

1
Additional Case Study: Outsourcing to Tata to accompany CHAPTER 2:
Operations Strategy in a Global Environment.
Tata is major Indian industrial and consultancy organization that has used its low cost
highly skilled, software professionals to establish a position in global markets. In this case
study Tata won the bid to revamp New Mexico state unemployment compensation
computer system.
The government of New Mexico, like most other state government, does not have the
expertise on staff to complete a major multiyear IT project internally. The factor rating
method in this chapter may have helped find the ideal provider and that may be a
worthwhile exercise for your students. Perhaps New Mexico should have considered
factors that related to:

• Establishing specific goals and specifications


• Negotiating goals and performance milestones
• Two-way communication on project status and performance.
A class discussion on how well New Mexico performed on the above factors should prove
interesting. Use factor rating to evaluate both country and outsource providers.
Analytical thinking: There are undoubtedly cultural issues that arise the first time an
organization deals with any foreign partner (you can probably pick good recent examples
from the daily news). Yet each of the issues above needs to be rigorously ad dressed for
any project. IT project. Perhaps more than other outsourced projects have very high failure
rate for sundry management reasons, which in this case are complicated by distance and
culture. Large long-term projects such as this have an increased chance of budget over
runs, delay, and changing specifications. Diverse and multicultural work environment.
There are numerous risks associated with outsourcing IT projects. One estimate found that
79% of U.S. firms outsource some phase of their IT and IT projects. Turnover, both
internal and at the outsource provider, combined with less communication and control,
changing technology, and altered specifications, all contribute to increased risk.
For IBM, the same problem should not happen, it could be a case of success, because the
activity of the business is not the same "outsourcing of government activities", as indicated
by Tata company other state governments have sought to take advantage of low- cost
opportunities that international outsourcing can offer however they were not specialists in
the case.
Computerworld US serves IT and business management with coverage of information
technology, emerging technologies and analysis of technology trends. Computerworld also
publishes several notable special reports each year, including the 100 Best Places to Work
in IT,IT Salary Survey, the DATA+ Editors' Choice Awards and the annual Forecast research
report. Computerworld in the past has published stories that highlight the effects of
immigration to the U.S. on software engineers.

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