Abstract

This Case is also available in Spanish Language. For more details refer to OSITSY047 in “Part - B”. The case discusses the IT outsourcing strategy of JP Morgan Chase, a leading financial services provider in the US. It explains how IT was managed in-house at JP Morgan before the bank’s merger with Chase Manhattan. It details the circumstances under which the decision to outsource IT management to IBM was taken and the expected benefits from this deal. The case then describes how the merger of JP Morgan Chase with Bank One led in the cancellation of the outsourcing contract. Finally, the rationale behind the cancellation of the contract and its impact on both the parties is also presented. This case highlights the problems associated with IT outsourcing and compares it with in-house IT management.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the issues pertaining to technology management in a large financial services company.

Keywords

JP-Morgan Chase, IT Outsourcing, Business Process Outsourcing, Outsourcing Problems, IBM On Demand Computing, IT-BusinessIntegration, Technology Management, Technology Procurement Project, IT Infrastructure Consolidation, Organizational Transformation, Offshoring, Technology Council, IT Strategy