SAP Basis Responsibility - NW Admin

The decision to outsource a task or service should be taken not only in terms of cost, but also by assessing the competitive differentiation and strategic importance. Characteristics for describing the costs are the specificity of the task and the embossing by unit cost degression, i.e. decreasing costs with increasing number of tasks or performance. Of strategic importance are, in particular, those tasks and services which are difficult to imitate by competing companies. Figure 4 compares the strategic importance and cost advantages in order to arrive at fundamentally valid statements regarding the usefulness of outsourcing for certain IT tasks and services. In addition to this, as already discussed by Recommendation [A2], it is then worthwhile to establish a catalogue of criteria for evaluating and looking in detail at certain characteristics of the application or services. An exemplary catalogue of criteria can be found in chapter 9.6 of the Master thesis. Figure 4: IT Outsourcing Decision Matrix THE DECISION TO OUTSOURCE A TASK OR PERFORMANCE SHOULD BE MADE NOT ONLY IN TERMS OF COSTS BUT ALSO BY ASSESSING COMPETITION DIFFERENTIATION AND STRATEGIC IMPORTANCE.