Minicase 2

1. What were the major drivers of the outsourcing at Kone?

The major drivers of the outsouring at Kone are
- implementation and management of global-standard IT environment because Kone found out that their internet IT processes were insufficient to support the globalization strategy
- perform mainframe operations to Computer Science Corp

2. Why did Kone elect to work with several vendors?

Kone elected to work with several vendors because
- the scope of outsourcing was much larger
- by using two seperate vendors promised the best-of-breed approach and help Kone in managing real-time data on product sales, profitability and backlogs.

3. What are some of the risk of this outsourcing?

The risks of this outsourcing includes:
- cost control of glodal outsourcing in infrastructure and people
- private communication networks failure
- integrity and compatible of hardware and software with different IT platforms and variety of applications

4. How can Kone control its vendors?

Kone control its vendors by
- maintains some IT competencies to allow it to actively manage its outsourcing partners
- Kone's internal team meets online regularly, and the vendors collaborate and work closely together

By: Goh Poey Ching