Subject category:
Knowledge, Information and Communication Systems Management
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
Topics:
JP Morgan Chase; IT (information technology) outsourcing; Business process outsourcing; Outsourcing problems; IBM on demand computing; IT-Business integration; Technology management; Technology procurement project; IT infrastructure consolidation; Organisational transformation; Off shoring; Technology council; IT strategy
Abstract
The case discusses the IT (information technology) outsourcing strategy of JP Morgan Chase, a leading financial services provider in the US. It explains how IT was managed in-house at JP Morgan before the bank's merger with Chase Manhattan. It details the circumstances under which the decision to outsource IT management to IBM was taken and the expected benefits from this deal. The case then describes how the merger of JP Morgan Chase with Bank One led to the cancellation of the outsourcing contract. Finally, the rationale behind the cancellation of the contract and its impact on both parties is also presented. This case highlights the problems associated with IT outsourcing and compares it with in-house IT management.
Teaching and learning
This item is suitable for postgraduate courses.About
Abstract
The case discusses the IT (information technology) outsourcing strategy of JP Morgan Chase, a leading financial services provider in the US. It explains how IT was managed in-house at JP Morgan before the bank's merger with Chase Manhattan. It details the circumstances under which the decision to outsource IT management to IBM was taken and the expected benefits from this deal. The case then describes how the merger of JP Morgan Chase with Bank One led to the cancellation of the outsourcing contract. Finally, the rationale behind the cancellation of the contract and its impact on both parties is also presented. This case highlights the problems associated with IT outsourcing and compares it with in-house IT management.