Toward Innovative Model Based Enterprise IT Outsourcing

Abstract

There are signs that cost arbitrage model of outsourcing engagement between enterprises and service providers will have to change to one based on value generation. Automation decisions taken by siloized businesses under cost arbitrage models have led to complex cost-ineffective situations. Both these situations may be addressed by an innovative business model based on product family concepts that systematically targets transactional and transformational needs of enterprises with focus on value generation using analysis and operational world views of enterprise IT systems. We motivate and elaborate such an approach. Our contributions are innovation that leads to mutual winwin situation by enabling service providers to service IT needs of multiple enterprises of same vertical and by enabling enterprises to reap value-oriented benefits with analysis and operational world views of IT systems thus serviced.