Product details

This is the second of a two part case series (394-098-1 & 394-099-1). CoCoFab NV is the European multinational subsidiary of a global food company. Removed from its former datacenter after a split-up of the holding company, CoCoFab NV''s Information Technology director, Govers, signed a three-year contract in 1991 with an outsourcing vendor, SSI. SSI restarted datacenter activities, implementing new mainframe hardware and transferring operator personnel. Although initially the most cost efficient decision, the outsourcing contract gradually put a heavy burden on the IS budget. Mid 1993, under severe pressure from his colleague directors, Jeroen Govers is facing some difficult decisions regarding the remaining period of the outsourcing contract. Consequently, he considers several options he might undertake in the future which are highlighted in part (B) of the case. The case describes many of the tensions an IT director undergoes during a period of outsourcing. The evolution in the power balance that characterises the relationship between the vendor and the IT director is highlighted.