Hrad Technika Background This is a classic classic case on on IT outsourcing outsourcing from from the perspective perspective of Hrad Technika- the IT IT services provider and the client partner Tegan. Hrad enters into a contract to create a new accounts payable system for the toy distributor, Tegan. The outsourcing rm from the Cech !epublic views the pro"ect as a step forward in establishing trust and building superior client relationships. The pro"ect, however, does not take o# as e$pected. This leaves Hrad and Tegan in not such a happy situation and their healthy relationship relationship is "eopardied. The case allows the e$amination of how to manage an IT outsourcing pro"ect.
Key Issues Lack of ecient reviewers %nly &ulia &ones was the e$pert reviewer who could provide p rovide valuable feedback on the ''(s
The project not on a high radar %ther key pro"ects such as the )!* implementation pro"ect re+uired huge e#orts, was running in parallel and was far from completion
Requirements not clearly dened Initially, they had planned to go ahead with the aterfall aterfall odel. However, when they moved forward with the piral odel, the /0* system began to crash. This indicates that the specications outlined outlined in individual ''(s may not have been comprehensive in nature.
Recommendations It is evident that there are two important options1 either to reduce the system functionality functionality or push the deadline ahead. /mong the identied options, the recommendation is for the latter and not the former. This recommendation is because the decision will benet both Hrad and Tegan as the pro"ect will be completed with the e$pected outcome. In order to ensure client satisfaction, Hrad can concentrate on his e$isting plan to not recover the additional costs from Tegan and work on their internal budgeting for the pro"ect to see how much compromise with respect to the nances can be made. This can help help revive their their relationship relationship with Tegan if the budget budget is largely largely taken taken care of. of. /lso, in order to ensure that similar hiccups are not challenged in the future, Hrad should get a sanction of the detailed timelines from the client and possibly a list of the stakeholders who would provide the reviews and be highly involved in the
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vendor interactions. This would help in better estimation of the e#orts re+uired. Thus, they would be able to set the right e$pectations with their clients.
