The RBS group is a large international banking and financial services company. From its headquarters in Edinburgh, the Group serves over 30 million customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. (http://www.rbs.com, 2013).
1.1 Overview of the case study: RBS computer failure caused by inexperienced operative in India. (By Hannah Furness)
In the case of computer failure has happened to RBS, their party has responded that it is a good thing, even something that is not good. The good news is because they are aware of how sensitive they need in dealing with its outsourcing process. Moreover, the bad, they should pay compensation to their clients. Besides, as the problems persisted, the response became less effective.
The problem had caused a core payments system goes down, people cannot pay for the things they need, companies cannot function, commerce grinds to a halt and economies fail. However, the IT failure that hit RBS will cost the bank more than predictable as £50m is paid to customers in compensation. Perhaps, in order to redeem some of the confidence and trust from their client, they have lost what they need to be more open about the root cause of the failure.
Summary of the case study
In view of the difficulties experienced by the RBS, they should be more sensitive in doing outsourcing. This is because, in the event of his problems as already stated, it would be disadvantageous sides. RBS own behalf, they should pay damages and the shame of the problems that have occurred. They also face difficulty to get back the trust and confidence from their client. In addition, those parties should also not blame the technician. This is because it will present to the public that the RBS is not responsible for their mistakes and continue to point fingers at others.
2.0 Question 1:
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
During nowadays, there are many companies that doing outsource. Starting a new business concept is not an easy thing, especially when there is a service offered is the non-core of their business. For example, the banks should concentrate on providing banking and financial services only. On the other hand, internal facility management of buildings need to reference to other sources that is not involved in the core business of the bank.
Outsourcing is represented that one company constricting with another company to deliver the services that they might don’t have the skills. In some areas of work, it can actually be done by the company itself, but it will cost a lot less if the company adopts the concept of outsourcing and will result in financial advantages. Actually, the service outsourcing companies in some procedures are more profitable because it can save the cost and quality of management will be better. This is because; the organization does not need to build any unit...