Organizations face important risks with IT Outsourcing (ITO), the practice of delegating organizational IT functions to third parties. Here, we employ a system dynamics simulator to support ITO decision-making under risk, taking a dynamic and integrated view of both capabilities management and benefits management. After briefly presenting its functionality, we use the simulator to assess how deficits in two IT capabilities -- Contract Monitoring (on the customer's side) and Service Delivery (on the supplier's side) -- affect the earned values of service orders, the ITO budget, service completion dead-lines and damage to the customer-supplier relationship. Validation is ongoing at four institutions in Brazil, including a large, state tax collecting and finance agency. Initial results are encouraging and indicate the simulator is useful for planning and managing ITO activities.
|Title of host publication||Simulation and Modeling Methodologies, Technologies and Applications: International Conference, SIMULTECH 2014 Vienna, Austria, August 28-30, 2014 Revised Selected Papers|
|Editors||M. S. Obaidat, T. Ören, J. Kacprzyk, J. Filipe|
|Number of pages||22|
|Publication status||Published - 2015|