Analysis of a large-scale IT outsourcing "failure": what lessons can we learn?

Much of the research that has been carried out into outsourcing is based on relatively successful case studies. Yet drawing inferences from case studies when those with largely negative outcomes rarely see the light of day represents a significant problem. When negative cases are systematically unrepresented, there is less opportunity to subject theory to scrutiny. This chapter goes some way towards redressing this trend, by reporting on a large scale “selective” outsourcing arrangement that has been publicly described as a failure — the Australian Federal Government’s “whole of government” IT infrastructure outsourcing initiative. This initiative, originally promoted as likely to lead to a billion dollar saving, was abandoned early in 2001, after a damning public report by the Australian Auditor General. However, a detailed study of the initiative suggests that the “failure” occurred despite the project adhering to many of the recommended guidelines for successful outsourcing that had been derived from earlier case analysis. The findings have important implications for decision makers confronted with outsourcing choices. The study suggests that the risks of outsourcing are often downplayed, or ignored in the rush to reap the expected benefits. The study also suggests that expectations of savings from outsourcing IT are often substantially higher than those that have been empirically confirmed in the field. Decision makers are advised that key assumptions about costs, savings, managerial effort, and the effects of outsourcing on operational performance might be incorrect, and to plan for their outsourcing activity accordingly. They should pay particular attention to coordination and transaction costs, as these tend to be overlooked in the business case. These costs will be magnified if “best in breed” multiple-vendor outsourcing is chosen, and if contracts are kept short. Decision-makers are also warned of the difficulties they are likely to have at the end of an outsourcing contract if there is not a large and robust pool of alternative vendors willing to bid against the incumbent.

Security authentication for on-line internet banking

The advent of Internet Banking has shown the importance of effective method of authenticating a users in a remote environment. There are many different countenances to contemplate when examining Internet based security. One of the most tried and trusted techniques of protecting the safety of systems and data is to control people's access. The foundation for such measures is authentication. Specifically for Internet banking there is a real need for a way to uniquely identify and authenticate users without the possibility of their authenticity being cloned. This paper proposes a framework concerning how to identify security requirements for Internet Banking.

A risk analysis model to reduce computer security risks among healthcare organizations

The paper describes the on-going development of a new computer-based security risk analysis methodology that may be used to determine the computer security requirements of medical computer systems. The methodology has been developed for use within healthcare, with particular emphasis placed upon protecting medical information systems. The paper goes on to describe some of the problems with existing automated risk analysis systems, and how the ODESSA system may overcome the majority of these problems. Examples of security scenarios are also presented.

A security evaluation criteria

Computer security is now recognised as an important consideration in modern business, with a variety of guidelines and standards currently available to enable different business environments to be properly protected. However, financial and operational constraints often exist which influence the practicality of these recommendations. New baseline security methods such as Australian and New Zealand Standard (AS/NZS) 4444 and British Standard (BS) 7799 represent minimal standards which organisations can use to improve their security. The aim of the paper is to look at the effectiveness of baseline security standards through the use of an evaluation criteria, which assesses their effectiveness.

Security practice: survey evidence from three countries

Computer security is becoming a global problem. Recent surveys show that there increased concern about security risks such as hackers. There is also an increase in the growth of Internet access around the world. This growth of the Internet has resulted in the development of new businesses such as e-commerce and with the new businesses come new associated security risks such as on-line fraud and hacking. Is it fair to assume the security practices are the same all over the world? The paper tries to look at security practices from a number of different countries perspective and tries to show that security practices are not generic and vary from country to country.

Outsourcing and downsizing: Processes of workplace change in public health

Throughout the 1990s, public hospitals embarked on a range of benchmarking exercises for support services, often accompanied by downsizing and, in some cases, outsourcing. These support services included clinical areas such as, radiology, pharmacy and pathology, and nonclinical areas of catering and cleaning, engineering and environmental services. The impetus for this trend was the introduction of the Federal Governments National Competition Policy with its rationale that private sector pressures and competition would make the public sector more efficient.
Through a case study approach, this paper discusses this process at two public hospitals, the aim being to investigate the reasons for outsourcing, outsourcings interconnectedness with downsizing, and the implications at the workforce level. Workplace issues discussed include consultation between management, unions and employees, changes to employee numbers and work practices, maintenance of workplace conditions, implications for staff recruitment and retention, and the relative power of management and unions. It concludes that benchmarking, outsourcing and downsizing have all been used to bring about workplace change. Whilst the choice between processes may be dependent on management perception of the workplace environment, implications for the workplace from each process have been similar.

Counter-terrorism and (in)security : Fallout from the Bali bombing

In the wake of the Bali bombing the Australian government has proposed a number of national security measures that pose a real danger to human security in Australia and the region. These measures include renewed and increased military and intelligence exchanges with Indonesia, and laws that allow the Australian Security Intelligence Organization (ASIO) to detain people without charge or even suspicion in order to gather intelligence. In less emotional times these initiatives would be rejected as contrary to human rights concerns and Australia’s democratic traditions, which include the rule of law and due process protections. In the current climate, however, human rights and civil liberties are apt to be portrayed as unaffordable luxuries.

`Counter-terrorism`, human security and globalisation - from welfare to warfare state?

The continuing erosion of civil liberties in Western democracies, and in particular Australia, as a response to the threat of terrorist attack - the position taken that laws eroding civil liberties will ultimately fail in its attempt to combat terrorist activity while adding to human insecurity and violence - counter-terrorism measures resulting in the militarisation of law enforcement and provoking terrorism - linking counter-terrorism with globalisation.

The Strategic outsourcing Decision of IT and eCommerce: The Case of Small Businesses in New Zealand

In New Zealand, small to medium-sized enterprises (SMEs) play a very important role in the economy by their contribution to both employment and gross domestic product. Addressing issues pertinent to SMEs is of paramount importance in driving this sector forward. Information Technology (IT) emerges as one main enabler for SMEs in automating their operations, seeking new opportunities and enhancing their strategic business positioning in local and international markets. However, the inability of SMEs to handle the dynamic nature of IT due to problems inherent in their size, structure and resources, makes it difficult for them to take appropriate decisions to benefit from the IT technologies. The advent of eCommerce (EC) has only compounded this problem. One way out of this complex situation is to outsource the IT and EC technology requirements by the SMEs. This study endeavours to identify the pattern of IT and EC outsourcing issues of SMEs within New Zealand. This research attempts to identify the main driver for IT/EC outsourcing in SMEs as well as to explore the problems of IT outsourcing and makes suggestions for further research in this crucial sector.

Security for internet banking: a framework

As a continually growing financial service of electronic commerce, Internet banking requires the development and implementation of a sound security procedure. This involves designing effective methods via which users can
be authenticated in a remote environment. Specifically for Internet banking there is areal need for away uniquely to identify and authenticate users without the possibility of their authenticity being cloned. Some technologies in use have been presented for meeting the security requirements for national, regional and global Internet banking assurance. However, there has been little research conducted particularly on the creation of secure
and trusted pathways. Concentrates on presenting a security framework for Internet banking based on discovering and defining these pathways in terms of adequate authentication mechanisms. Proposes a framework concerning how to identify security requirements for Internet banking such that the
transactions being conducted are secured within their respective environments.

Outsourcing and benchmarking in a rural public hospital : does economic theory provide the complete answer?

INTRODUCTION: The ideology and pronouncements of the Australian Government in introducing 'competitive neutrality' to the public sector has improved efficiency and resource usage. In the health sector, the Human Services Department directed that non-clinical and clinical areas be market tested through benchmarking services against the private sector, with the possibility of outsourcing. These services included car parking, computing, laundry, engineering, cleaning, catering, medical imaging (radiology), pathology, pharmacy, allied health and general practice. Managers, when they choose between outsourcing, and internal servicing and production, would thus ideally base their decision on economic principles. Williamson's transaction cost theory studies the governance mechanisms that can be used to achieve economic efficiency and proposes that the optimal organisation structure is that which minimises transaction costs or the costs of exchange. Williamson proposes that four variables will affect such costs, namely: (i) frequency of exchange; (ii) asset specificity; (iii) environmental uncertainty; and (iv) threat of opportunism. This paper provides evidence from a rural public hospital and examines whether Williamson's transaction cost theory is applicable. d into an analysis that relies solely on transaction