Research On Company H’s Development Strategy Of IT Service Outsourcing

As early as in last century, Peter Ferdinand Drucker has ever predicted that “in nomore than ten to fifteen years, every company will and should outsource its all workloadthat does not lead to sale volume directly.” At present, if companies still do all the ITinfrastructure by themselves, it will be inevitable that resources are wasted andoperation effectiveness are low. Also, this will lead to increased cost to communicatewith others’ IT systems. However, if IT infrastructure is outsourced from thosespecialized IT service businesses with imported advanced IT technology, companies canbenefit from their improved internal specialization, focused resources allocation andthus decreased IT infrastructure cost while upgraded core competencies.Company H is a business specialized in software development, system integration,IT infrastructure planning and consulting, IT operation and maintenance service. It helpscompanies to plan, build and practice IT infrastructure and with its more than ten yearsexperiences dealing with enterprises and governments, it has build up highly advancedIT service capability.Based on strategic management theories and industrial background ofmanufacturing, this article analyzed the outsourcing strategy of company H. With thefirst-hand information obtained through the interviewing with top management andmanagers from the various department of company H, PEST, EFE and IFE are used toanalyze the macro, industrial environment and its own internal capabilities, SWOTanalysis is used to examine its own strength, weakness, threats and opportunities, GEanalysis is done to examine its business and product portfolios. Then, based on theseanalysis, the company’s strategic goals are identified and the corresponding action plans,such as its general strategy, HR strategy, market and brand strategy, core competencies,M&A strategy and its strategy roadmap, are suggested buy this paper.