AS final exams

Answer

ISAS 620,  January-April 2021:  Final Exam – Due 30 March 2021

Directions: The exam is available beginning in Session 10. Submit your exam to the assignment folder before the end of Week 11, 30 March.

1. Provide a cover page with your name, the course identification, and the date. List any reference sources cited within the exam on a separate References page at the end of the exam document. Enter the sources used in correct APA format.

1. Respond to each of the eight items listed below. Reflect the material discussed in the course readings and the session notes. The first seven items may be answered with simple lists or short paragraphs. Reference citations are not required for the first seven items in the exam. The point value for each exam item is shown with the item. The exam is worth 100 points total.

     Show the exam item, then, provide the answer response following the item. For full credit address every element of each exam item in sufficient detail to demonstrate your grasp of the topic.

Exam Items:

1. One type of acquisition model associated with sourcing of IT/IS services, as discussed in the course readings, is Direct Purchase from the original equipment manufacturer. Identify two other   models from the readings, and give a practical example of each (Gordon-Byrne, 2014). (12 pts.)

a)Partner model—An example of this is where an organization reaches a deal with a supplier to get preferential treatment in terms of the pricing. The main suppliers outsources the retail sales force to others and then the IT/IS services are acquired from these outsourced sources.

b)Reseller model—This is evidenced when an organization acquires the IT services and equipment through a seller who had either directly acquired them or got them through partners. The equipment is sold to the organization from a person/organization that has acquired them for use from the main source.

2. Explain the difference between tangible and intangible assets when accounting for IT/IS purchases. Give an example of each type of asset, and describe why the difference is important when buying or selling IT equipment. (Gordon-Byrne, 2014). (12 points)

Tangible assets are assets that have a physical existence and which can be touched and felt. They are mainly used to produce services or products and are more easily valued than the intangible ones. Examples of these include computers, hard drives, buildings, storage facilities and many more. Intangible assets on the other hand do not possess a physical character. They have quite an indefinite life depending on the type of asset in question. They include intellectual property, brand name, contracts, customer relationships and other agreements.

The difference between the two is important in terms of the transferability of the assets. If the asset is classified as intangible, then it would not be transferred easily. Tangible assets like hardware equipment can be transferred easily.

3. In Chapter four of the course readings, Siepmann (2014) lists physical and logical security control methods for outsourced IT systems. Name two examples from each category of security method and briefly describe their potential shortfalls of control effectiveness. (12 points)

4. a) Identify at least four criteria for an article to be considered authoritative for academic research purposes. b) Explain why the distinction of authoritativeness is important. c) Give examples of two articles from the readings for this course that are not deemed to be authoritative. d) Tell why the articles do not qualify as authoritative. (12 points)

The first criteria is peer review. When an article is peer reviewed, it has an authority. The second criteria is that the article ought to have been written by an authority in the field. Thirdly, the article has to have all the formal elements of an academic article—Title, Abstract, Reserarch Methods, Findings, Discussion, Conclusion and References. The last measure of an authoritative article is a narrowed focus that offers extensive insights into a given topic.

The authoritative distinction of articles is important because it assists a researcher to logically organize their findings in a given research area. In addition, it gives the research a much needed credibility.

5. List the three main categories of business process outsourcing risks identified in the Session Notes for the course. Give a practical example of each main category of risk. (12 points)

a)Allignment of Strategies—The outsourcing company may have a different set of security strategies with the client. This means that the security strategies have to be aligned so that there is no conflict between the two.

1.Jain, D. M., & Khurana, R. (2016). A framework to study vendors’ contribution in a client vendor relationship in information technology service outsourcing in India. Benchmarking: An International Journal, 23(2), 338-358.

2.Kvedaraviciene, G & Boguslauskas, V. (2010). Underestimated importance of cultural differences in outsourcing arrangements.  Engineering Economics, 21(2), 187-196.

The above articles are not written by authorities in the field, neither are they peer reviewed. This makes them non-authoritative.

b)Transforming—A business organization may have a complex set of security strategies which the outsourcing company may make one believe that transforming them automatically makes the equipment better. Transformation has to be in line with the organization’s complex strategies and respect their processes.

c)Maturity Levels—the outsourcing company has to have measures of maturity like the ISO 9001 certification.

6. Any contract, to be legally enforceable, consists of six core factors. Identify those six legal requirements, as discussed in the Session notes, and give an example of how each can be applied to an outsourcing contract for IT/IS services. (12 points)

a)Offer; an invitation that contains an agreement to accept the most competitive bid and states that one of the tender for an IT service will be accepted

b)Acceptance; a communication to the offeror that their offer to outsource IT/IS services has been accepted

c)Intrention to create legal relations; this is when the two entities go beyond mere proclamations and commit to MOUs and legally binding documents for the IT/IS service

d)Consideration; this can be where the promisor(outsourcing company) makes it clear to the promise (the client) that the outsourced services will be considered for their total benefit

e)Legality and capacity; If an agreement relates to the provision of an illegal IT/IS service, then the contract would be illegal

f)Certainty; An IT/IS outsourcing contract becomes void when there is no reasonable certainty for the operation of essential terms.

7. Many organizations are sourcing IT/IS services from cloud-based providers. Identify three such providers, compare and contrast their services. Describe three advantages and three disadvantages of using cloud systems for IT/IS support. (8 points)

Providers

-Google cloud

-Oracle

-Microsoft Azure

Google cloud has integrated video calling, email, chat and document collaboration services. It provides a platform for new app development and puts emphasis on clean cloud development. Oracle cloud on the other hand has emphasis on the provision of servers, network, storage and application services. The services build, deploy and extend cloud applications. Microsoft Azure identifies networking, the developing of developer tools, provision of data and analytics and the hosting of databases as its core services. Like Google cloud, Microsoft Azure offers video, voice, SMS, chat and other networking services.

8. Write a narrative essay in APA format addressing the following topics related to cultural issues when sourcing IT/IS services offshore from one’s home country.

1. A) Identify three outsourcing issues caused by cultural differences.

1. B) Address the impact of two of the issues on sourcing success, give a practical example of each issue in a typical IT/IS offshore outsourcing situation, and

1. C) Suggest ways to avoid or mitigate the selected cultural issues.

     Support your facts and opinions with citations for at least three valid reference sources. (You may use information from any source noted in this course, or those you select from the literature in the sourcing field.)

      Begin the essay narrative on a new page. Write the narrative in APA format with double spacing, half-inch indentation of the first line of each paragraph, and standard one inch margins on all sides. List the reference sources used in this essay narrative in a formal reference list in APA format at the end of the document along with any other sources cited within this exam paper. (20 points).

Cultural Differences in Offshore Outsourcing

Cultural differences that exist between the outsourcing companies and the cultures within which they operate present a barrier to success of offshore outsourcing deals. Depending on which culture the outsourcing contract takes effect, the success will rely on how accommodating that culture is, how the two entities can reach amicable understanding when there are conflicts, the manner of their communication and how they make decisions. This essay looks at some of these cultural differences and how they affect outsourcing activities. Ultimately, it suggests ways in which these cultural issues can be mitigated.

One of the chief cultural challenges is the different communication styles in various cultures (Ang & Inkpen, 2008). An outsourcing company may be used to direct communication or communication through the hierarchical channels. In case the culture is at odds with these ways of communication, then the outsourcing company runs into problems. Secondly, the different attitudes towards conflict and conflict resolution present a real threat to cross-cultural understanding. Often, various cultures have differing beliefs on how conflicts ought to ensue and how they are eventually resolved. The outsourcing company may be from a different cultural set of conflict resolution and may therefore find it difficult to adapt to the different beliefs on conflict resolution from different cultures. The final cultural problem is the decision-making models. Various cultures vary in the manner of their decision-making (Nicholson & Sahay, 2001).. In some cultures, extensive consultations are needed before decisions are reached. When the outsourcing company believes in unilateral decision-making, this compounds the problem at hand.

The manner of conflict resolution provides a real threat to cross-cultural understanding for offshore outsourcing entities (Kvedaraviciene & Boguslauskas, 2010). In a culture where there is a belief in people paying for their mistakes or errors, there would be difficulties in making them understand why an outsourcing company would not pay up for breaching a contract, causing intentional injury or compensating for losses they caused. When such companies provide outdated equipment, they would be expected to make it up rather than offer verbal apologies. This may cause misunderstandings between them. The decision-making strategy for an IT/IS service outsourcing outfit may be dependent on what the top management decide (Krishna et al. 2004). However, while in a culture where the opinions of junior employees and all within the organization have to be included, then the model of making decisions may be problematic. While making a decision on which cloud service to use for example, the management may only look at the potential advantages this may have for the company while the employees see how the deal would be harmful to them and their environment. Reaching an amicable solution would be difficult.

To mitigate on the challenge of conflict resolution, the outsourcing company has to research on the particular culture within which they are to operate long before they start operations there. They have to agree on how best potential conflicts of agreements, contracts and the general public would be resolved without upsetting the cultural balance. On the decision-making, the outsourcing company has to come up with agreeable decision-making model that is inclusive of the cultural belief patterns of the area where they operate (Nicholson & Sahay, 2001). These culturally sensitive ways of decision-making then would be integrated so that disagreements are minimized.

In conclusion, to operate offshore as an outsourcing entity for IT/IS services needs the admission that cultural sensitivities would affect the nature of business. The manner in which people communicate differently, solve conflicts and make decisions ought to influence the strategies that an offshore outsourcing company ultimately uses within their businesses.

References

Ang, S., & Inkpen, A. C. (2008). Cultural intelligence and offshore outsourcing success: A framework of firm‐level intercultural capability. Decision Sciences, 39(3), 337-358.

Kvedaraviciene, G & Boguslauskas, V. (2010). Underestimated importance of cultural differences in outsourcing arrangements.  Engineering Economics, 21(2), 187-196.

Krishna, S., Sahay, S., & Walsham, G. (2004). Managing cross-cultural issues in global software outsourcing. Communications of the ACM, 47(4), 62-66.

Nicholson, B., & Sahay, S. (2001). Some political and cultural issues in the globalisation of software development: case experience from Britain and India. Information and organization, 11(1), 25-43.