Outsourcing
Alternatives
There are three alternatives in this situation. There is a re-org that has been proposed for the IT department. There is the view of the CIO, which is that no re-org is necessary, so essentially the status quo option. The third option is to outsource the IT department.
Compare Outsourcing with Internal Solutions
There are advantages and disadvantages to outsourcing the IT department to a third party vendor. The biggest advantage is that the vendor can handle the size and complexity fairly easily, since most vendors work with customers much larger and more complex than us. Having such a vendor also means that our company does not need to have as large an IT department. This may or may not result in cost savings. The company can also avoid a re-org, but the CIO recommends against that option. A vendor will also allow Triad to work with the latest software, and the vendor will be responsible for updating the software. . Having a vendor also gives Triad a partner in IT, whereas without a vendor, the company must handle its IT in-house, with no support.
There are a couple of downsides to having a vendor. The first is that the vendor sometimes...
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