OUTSOURCING ITS IT, KONE IS FOCUSING ON ITS CORE COMPETENCIES

1. Major drivers of the outsourcing at Kone.
a. Kone internal IT processes were insufficient to support the
expansion
b. IT costs growing rapidly, but IT contribution to reducing
administrative cost global sales was minimal
c. None of the regional, IT infrastructures was integrated, nor
were they connected or compatible

2. Kone elect to work with several vendors because;
a. By using 2 vendors, it promised the best-of-breed approach
b. To ensure they have high availability environment
c. Assist in managing with real-time data on the product sales,
profitability and backlogs

3. Risks in IT outsourcing
a. It is cost effective. Will it really reduce the cost?
b. Quality of the services offered from the vendors

4. Kone can control its vendors by;
a. By make sure all services provided by them is fulfilling.
b. By developing a system that will connect the vendors and Kone
internally.