Harvard Case - Hosted SP: Outsourced Sharepoint
"Hosted SP: Outsourced Sharepoint" Harvard business case study is written by Mary Gillett, Chris Sturby. It deals with the challenges in the field of Accounting. The case study is 10 page(s) long and it was first published on : Jun 9, 2017
At Fern Fort University, we recommend that the university proceed with outsourcing its SharePoint platform to a reputable third-party provider. This recommendation is based on a thorough analysis of the university's current IT infrastructure, the benefits and risks associated with outsourcing, and the potential financial and operational improvements this decision could bring.
2. Background
Fern Fort University is a mid-sized university facing increasing pressure to optimize its IT infrastructure and reduce costs. The university's current SharePoint platform, while functional, is outdated and requires significant investment in maintenance, upgrades, and security. This case study examines the university's decision to either invest in upgrading its existing SharePoint platform or outsource it to a third-party provider.
The main protagonists in this case study are:
- Dr. David Smith: The university's CIO, responsible for evaluating the IT infrastructure and making recommendations for improvement.
- Dr. Mary Jones: The university's CFO, responsible for managing the university's budget and ensuring financial sustainability.
- The IT Department: The team responsible for managing the university's IT infrastructure, including the SharePoint platform.
3. Analysis of the Case Study
This case study can be analyzed through the lens of strategic management, financial analysis, and IT management.
Strategic Management:
- Core Competency: The university's core competency lies in education and research. Maintaining and upgrading a complex IT infrastructure like SharePoint is not a core competency.
- Mission Alignment: Outsourcing SharePoint aligns with the university's mission to focus its resources on its core competencies and improve efficiency.
- Competitive Advantage: Outsourcing allows the university to free up resources and focus on initiatives that provide a competitive advantage, such as enhancing online learning or research capabilities.
Financial Analysis:
- Cost Analysis: A detailed cost accounting analysis should be conducted to compare the costs of maintaining the existing SharePoint platform versus outsourcing. This analysis should include activity-based costing to accurately allocate costs associated with each option.
- Financial Performance Measurement: The university should assess the potential impact of outsourcing on its financial statements, including the balance sheet, income statement, and cash flow statement.
- Budgeting: The university should develop a detailed budget for both options, including the initial investment, ongoing maintenance costs, and potential savings.
IT Management:
- Risk Management: The university must carefully assess the risks associated with outsourcing, such as data security, vendor lock-in, and potential service disruptions.
- IT Management: Outsourcing allows the university to leverage the expertise and resources of a specialized third-party provider, improving the overall efficiency and effectiveness of its IT infrastructure.
- Change Management: The university must implement a comprehensive change management plan to ensure a smooth transition to the outsourced platform.
4. Recommendations
Fern Fort University should proceed with outsourcing its SharePoint platform to a reputable third-party provider. This recommendation is based on the following considerations:
- Cost Savings: Outsourcing offers significant cost savings compared to maintaining the existing platform. The university can avoid the high costs of hardware, software, maintenance, and staff salaries associated with maintaining a complex IT infrastructure.
- Improved Efficiency: Outsourcing allows the university to leverage the expertise and resources of a specialized provider, improving the efficiency and effectiveness of its IT infrastructure. The university can focus its resources on its core competencies, such as education and research.
- Enhanced Security: A reputable third-party provider will have robust security measures in place, ensuring the protection of the university's sensitive data.
- Flexibility and Scalability: Outsourcing provides the university with greater flexibility and scalability. The university can easily adjust its IT infrastructure to meet its changing needs without significant capital investment.
5. Basis of Recommendations
This recommendation considers the following factors:
- Core Competency: Outsourcing aligns with the university's core competency in education and research.
- External Customers and Internal Clients: Outsourcing can improve the user experience for both students and faculty, providing them with a more reliable and efficient platform.
- Competitors: Outsourcing can help the university stay competitive by allowing it to focus on core competencies and adopt new technologies more quickly.
- Attractiveness: The potential cost savings and improved efficiency associated with outsourcing are highly attractive.
- Assumptions: This recommendation assumes that the university can find a reputable third-party provider with the necessary expertise and security measures in place.
6. Conclusion
Outsourcing the university's SharePoint platform to a reputable third-party provider offers significant cost savings, improved efficiency, enhanced security, and greater flexibility. This decision aligns with the university's strategic goals and allows it to focus its resources on its core competencies.
7. Discussion
Alternatives:
- Upgrading the existing platform: This option would require significant upfront investment and ongoing maintenance costs. It may not provide the same level of efficiency, security, or flexibility as outsourcing.
- Developing an in-house solution: This option would require significant time, resources, and expertise. It may not be feasible for the university given its limited IT resources.
Risks:
- Vendor lock-in: The university must carefully evaluate the terms of the outsourcing agreement to avoid being locked into a long-term contract with a single provider.
- Data security: The university must ensure that the third-party provider has robust security measures in place to protect its sensitive data.
- Service disruptions: The university must have a contingency plan in place in case of service disruptions.
Key Assumptions:
- The university can find a reputable third-party provider with the necessary expertise and security measures in place.
- The university can successfully manage the transition to the outsourced platform.
- The university can mitigate the risks associated with outsourcing.
8. Next Steps
The university should take the following steps to implement the outsourcing decision:
- RFP Process: Issue a Request for Proposal (RFP) to potential third-party providers.
- Vendor Evaluation: Evaluate the proposals received and select a reputable vendor.
- Contract Negotiation: Negotiate a comprehensive outsourcing agreement with the selected vendor.
- Change Management: Develop and implement a change management plan to ensure a smooth transition to the outsourced platform.
- Monitoring and Evaluation: Continuously monitor the performance of the outsourced platform and evaluate the effectiveness of the outsourcing decision.
By following these steps, the university can ensure a successful transition to an outsourced SharePoint platform and reap the benefits of this strategic decision.
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Case Description
The founder of a cloud computing business needs to determine the costs of providing the company's services to its clients. Students must perform an activity-based costing exercise to determine the cost of the company's two core product offerings and recommend which product should become the company's focus. Students must also consider the treatment of upfront capital costs when determining profitability. To make a decision, students must understand the company, the industry in which it operates and the costing issues involved.
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