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As noted earlier, the common engineering team is expected to continually enhance this catalogue, in particular in terms of private cloud solutions.

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The plan concerns all of the business lines but also includes the optimisation of support functions including IT through the use of external service providers and the establishment of shared services centers. Unlike the contracts of E. ON and Centrica, there has been no indication concerning possible transfers of personnel or assets, the usual sources of up-front, structural economies in IT outsourcing deals.

The Role of Organizational Standards in IT Outsourcing Relations | SpringerLink

While there is no publicly available information on this point, one might speculate that any residual over-staffing could be dealt with, albeit more gradually, through natural attrition. In this context, we would expect that major savings can be achieved through the virtualisation of the related application workloads. This is a domain in which OBS has unquestionable expertise and experience.

Leaving aside technical optimisation, one might wonder whether OBS, a relativly recent player in big IT outsourcing deals, has in place the expertise needed to "wring out" the other types of cost savings typically associated with these contracts, in areas such as operational procedures, software licenses and so forth. In the medium to long term, however, we see this type of internal-external competition as a key factor in keeping permanent pressure on costs. Managing a deal of this size and importance requires specific organisational structures and skills, together with ongoing management attention, not only from the supplier but also on the client side.

Taken together, these deals suggest that the traditionally conservative utilities sector has begun to modernise information system management, typically as part of an overall effort for performance improvement and in particular cost reduction. What is entirely less clear, however, is just how this can be done.

The private cloud is the answer Private clouds are the object of much interest in the IT industry as well as among large corporate IT users. As might be expected, the subject has provoked the usual interminable disagreements among experts, complete with dueling definitions and the skillful splitting of technical hairs. From a managerial perspective, private clouds are so to speak in the middle of a "competitive squeeze": On one side, public clouds offer more scalability and much better economies of scale.

On the other side, the underlying virtualised infrastructures are the real source of the operational economies and technical flexibility that are claimed for private clouds, rather than the visible functions of end user provisioning, usage based billing and so forth. Virtualisation can deliver most of the technical benefits, without necessarily deploying a cloud.

In this context, some might be tempted to write off private clouds as "a solution in search of a problem". In our opinion, this type of reaction is at the least premature. From the point of view of the IT department, a private cloud — and in particular a private cloud hosted in a service provider data center - can be an interesting option in various usage cases. We also think that a hosted private cloud can be a useful option depending as always on the circumstances as part of a business continuity strategy.

What is really at stake, however, is on the end user side, where the private cloud is seen as a potential vector for business innovation and reactivity. Putting technological tools in the hands of people often leads to surprising results.

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Aubert Published DOI: As part of the growing business trend to outsourcing various operations, IT outsourcing both determines the governance of a vital organizational function and influences the processes of exploitation and exploration in all other functions of an enterprise. View via Publisher. Alternate Sources.

The Role of Organizational Standards in IT Outsourcing Relations

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Mexico 9. Chile To determine whether RPA and BPaaS outsourcing alternatives are right for them, Cieslak suggested companies take these three basic steps: Take an inventory of back-office processes. Understand the financial impact of outsourcing.

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