VicRoads, the Victorian road Authority in Australia has a policy of outsourcing. This 3 page paper presents a SWOT analysis of that outsourcing policy. The bibliography cites 4 sources.
Name of Research Paper File: TS14_TEvicroads.rtf
Unformatted Sample Text from the Research Paper:
range and complexity of the tasks that it undertakes. Looking at a SWOT analysis concerning the outsourcing the strategy can be fully appreciated. A strength of the way
VicRoads has adopted outsourcing can be seen in 2004 when there was the decision to split up the contract in the way that IT services were providing and move them
away from IBM, GSA and DMR who supplied most of the IT outsourced needs and split the services up. In the original call for expressions of interest prior to the
tendering procedure there was no decision regarding the way that the services should be bundled, instead they were looking at markets and the optimal way of splitting up the
services that were to be outsourced (Woodhead, 2003). The result of this was the ability of placing the services with more specialized firms; the result has been increased savings,
with smaller companies used, as well as more flexibility as well as the greater level of specialization. EDS were awards the contract for vehicle licensing registration, that was to last
for five years and worth $58 million (Bajkowski, 2004). There was also the use of local firms for other contracts, including Testra to provide voice and data network traffic, and
Mincom who beat PeopleSoft and SAP for the five year $7 million contract (Bajkowski, 2004). Another major advantage of this strategy is the use of local firm, which are often
associated with off shoring, which is often associated with outsourcing is likely to be looked upon favorably by the public, especially as this is a public body. However, there are
also weaknesses. The contracts are granted for between 3 and 5 years, this means that when up for renewal there is the potential for costs to increase and new contracts