What we all knew was true, but could not get across to management, is now more scientifically proven. The decision process regarding the outsourcing of a DSS is influenced by significantly other characteristics, when compared to OLTP. If you are interested in the details, the theory and the underlying data, please read:
considered when outsourcing an IS system:an empirical examination of
the impacts of organizations size, Strategy and the object of a
decision (DSS or OLTP).
B.Berg and A.Stylianou in the European Journal of Information systems (2009 18, 235-248)
I still encounter organizations who are stuck in the OLTP world, even when the object of decision regarding outsourcing is completely different on many dimensions. They tend to use the same decision process regarding the outsourcing as they always did...whether they outsource an ERP, a CRM system a data warehouse or a more elaborate BI system.
In their research the authors found significant differences between the outsourcing of an OLTP and DSS in 15 of the 19 decision factors they examined. That's a hell of a difference....It turns out that the weight of these differences originated mainly from the supplier factors. In outsourcing a DSS the supplier factor where rated significantly higher as an influencer in the decision to outsource;
- The unfamiliarity with DSS technology
- Knowing the service provider's employees
- To reduce labor costs
- The service provider's expertise with outsourcing DSS
- The trustworthiness of the service provider's employees
- The service provider's current overall investments in OLTP/DSS
- To take advantage of different education systems at our service provider's location
- The service provider's employees' understanding of our needs
Bascially - outsourcing a DSS system - especially with firms that follow a differentiation strategy (these firms tend to recognize the unique strategic importance of DSSs), is very much influenced by the customer-provider relationship and the providers expertise in DSS. That sounds like a 'duh', but it is not. Because, what its also saying is that outsourcing a DSS system is not a commodity. You just can't tender a DSS into an 'open' world where service providers just sign in and win or loose based on measurable criteria. In practice we have seen that fail - big time! Now, science seems to be on our site.
Outsourcing a DSS is not the same as outsourcing an OLTP.
No, your OLTP service provider might not be the suitable provider for your DSS.
Posted February 8, 2010 7:47 AM
Permalink | No Comments |