The GlobShop’s IT Department: Offshoring Approach Essay

Strengths

• Before deciding to outsource its Information Technology (IT) systems, GlobShop’s resource pool was characterized by around “300 IT employees across the 10 regions” (Ranganathan et al., 2007, p. 442).
• The IT Department had competent IT professionals and personnel.
• The proposed and implemented centralized system consolidated resources and maximized the level of standardization.
• The leaders utilized the acquired profits and resources to introduce new value-additions for IT at the domestic level.
• The model delivered plug-and-play resources for effective IT management.
• The outsourcing decision from Indo-Systems Solutions (ISS) resulted in the development of a scalable and well-educated IT team that used the just-in-time philosophy to meet GlobShop’s business goals.
• The established partnership between GlobShop and ISS became a new opportunity for acquiring additional gains, including an internal website and effective processes for pursuing infrastructure tasks.

Weaknesses

• The regional IT units and segments functioned independently.
• The department’s original IT model was vulnerable and unsustainable.
• The created IT system was operating in a “managing-by-wandering around model” (Ranganathan et al., 2007, p. 442). This weakness forced GlobShop to consider offshoring its IT strategy to an Indian vendor.
• The established IT relationship with ISS proved costly.
• The internal IT department had little roles to play for GlobShop.
• The development or outcome would affect this organization’s future IT strategies and goals after the termination of the offshoring partnership.

Opportunities

• The presence of offshoring companies in Asia was an opportunity for GlobShop’s IT department to identify the best business partner.
• The workers at the company had adequate skills and competencies in the area of IT.
• The global community was focusing on new models and systems that would support business operations through the power of continuous research and development (R&D) and innovation.
• Many customers in GlobShop’s business segment preferred the use of online-based systems to achieve their goals (Ranganathan et al., 2007).
• The advancements in IT were becoming a new opportunity for more companies, such as GlobShop, to continue pursuing their goals efficiently.
• The financial resources ploughed back at the organization can prepare it for future operations and business aims (Şahin & Topal, 2018).
• More people were acquiring new concepts and ideas and IT. The company would incur reduced costs while trying to attract compete people to meet the demands of more customers.

Threats

• The IT department lacked its functional IT systems and resources.
• The decision to outsource such services could threaten future performance and sustainability
• The department did not have a strategy for expanding its IT roles (Ranganathan et al., 2007).
• Chances of hacking and access to confidential information or data were high due to the decision to offshore IT activities.

SWOT Summary

The weaknesses and complexities associated with GlobShop’s IT department forced the company to consider the idea of offshoring. The move presented a coordinated system and a team of experts capable of meeting the demands of more customers. The acquired profits are being utilized to transform internal IT systems and infrastructure. However, the internal team has found itself unprepared for the future while their duties have become obsolete (Ranganathan et al., 2007). With the changes and opportunities recorded in the global IT development, there is a need for this organization to consider new frameworks to implement a superior IT model that resonates with the needs of all identified customers (Şahin & Topal, 2016). The current offshoring approach might be productive but unhealthy or unsustainable for GlobShop. The establishment of an internal system will transform the current situation and prepare it for improved performance.

References

1. Ranganathan, C., Krishnan, P., & Glickman, R. (2007). Crafting and executing an offshore IT sourcing strategy: GlobShop’s experience. Journal of Information Technology, 22, 440-450. Web.
2. Şahin, H., & Topal, B. (2016). The effect of the use of information technologies in businesses on cost and financial performance. International Journal of Engineering Innovation & Research, 5(6), 394-401. Web.
3. Şahin, H., & Topal, B. (2018). Impact of information technology on business performance: Integrated structural equation modelling and artificial neural network approach. Scientia Iranica B, 25(3), 1272-1280. Web.