Report on Outsourcing of ICT

Question: Write a report on outsourcing of ICT. Answer: Introduction The National Australia Bank or NAB is the largest financial institutions in Australia in terms of customers and market capitalization. Being established in the year 1982, the Bank was then a merger of the two National commercial banking Corporations including the Commercial banking Company of Sydney and the National Bank of Australia (Subramanian 2013). The bank is ranked 21st largest in the world in terms of the total assets in the year 2014 (Bollen, Skully and Wei 2014). The bank is currently operating 1590 branches and service centers with over 12.7 million customers worldwide (Bajada and Trayler 2015). Objectives The bank has been struggling at present as it is finding difficulty to cope up with the maintenance of the information and record of the number of customers that have been increasing on a constant basis (Adams et al 2016). The Bank is thus, planning to outsource the business activities relating to the ICT including the finance, human resource and administration of the customers. The objectives of the Bank are: To develop the process outsourcing To enhance the project management To implement competitive business strategy To outsource the functions locally and buying the services Pros and Cons of the ICT outsourcing Pros The outsourcing can be viewed as the only source fir the reduction of the costs ignoring the cost for the introduction of the change requirements and also the ignorance of the transaction costs as well (Arduini et al 2013). The outsourcing can be viewed as the major weapons in the battle for improving the efficiencies by reducing down on their costs. The Bank needs to examine the outsourcing process thoroughly such that to be aware of the various challenges being present in the outsourcing process (Manochehri, Al-Esmail and Ashrafi 2012). The bank should not take the outsourcing prices to be the part of the business stagey. The outsourcing process should be looked in the isolation. The bank should adopt a fragmented approach for enhancing the management effort and overall value for money as required by the Bank. New skill recruitment and retention of the skillful employees should be incorporated for the relationship management, negotiation and contract management (Shyshkina 2013) The Bank should be developing more new model of service provision and the rules of argument to its business processes. The outsourcing process could be acting as the major weapon in the battle for reducing the costs and improving the efficiencies of the business processes (Szuster and Szymczak 2016). However, the bank also needs to examine the outsoaring process thoroughly such that to be aware of the situations and challenges that could be present during the implementation of their same. Cons The outsourcing contracts should be covering the initial period for three to four years with the options for the extensions in the future. The suppliers should be accepting the roles, responsibilities as well as the risks involved with the activities associated with the provision of services being provided by the Bank. The transfer of the facilities, equipments, and people can be used by the bank for providing the services from the customers to the supplier. The process may present many issues related to the personnel transitioning and intellectual property as well (Shyshkina 2013). Recommendation The bank is planning to outsource its business activities related to the ICT which includes the finance, human resources, and the administration of the customers. The bank also requires the company to produce regular records on the error rates and the turnaround time which should be based on the information related to the Bank for the evaluation of the records (Hyvnen 2015). This evolution would be helping the managers of the bank to evaluate the performance of the transition phases that are required to be implicated in the transformation process related to the ICT outsourcing. The process would also help both the parties to be engaged in a great sense of assurance in order to achieve quality results in the future. The Bank is required to communicate openly amend broadly about their business objectives through the various transition phases which could be helpful for the Bank for reducing down the loss of services or redundancies as a part of the transition (Szuster and Szymczak 2016). Moreover, the Bank is also required to communicate about the benefits related to the non tangible and tangible sources in order to help the mangers of the Bank to save money while implementing the transition. The managers of the bank are required to estimate both the resources and the time for the resourcing project. The estimation of the time and resources is necessary for transferring the functions to the third party. The transferring of the functions to the third party would enable it to provide efficient services to the bank. In addition, the Bank also requires selecting an appropriate party who should be having experience related to the banking business processes and system in Australia. References Balocco, R., Ciappini, A. and Corso, M., 2012. The impact of ICT sourcing on ICT organisation, competences and continuous innovation. International Journal of Technology Management 8, 60(3/4), pp.179-201. Beerepoot, N. and Keijser, C., 2015. The Service Outsourcing Sector As Driver of Development: The Expectations of Ghana's Ict for Accelerated Development Programme. Tijdschrift voor economische en sociale geografie, 106(5), pp.556-569. Bollen, B., Skully, M.T. and Wei, X., 2014. Basel capital adequacy agreements and bank risk: Some Australian evidence. 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