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Many industries are outsourcing their information technology operations to vendors in order to improve operational and cost efficiencies. Outsourcing can involve the transfer of assets, such as hardware and staff, to a vendor, or the user may simply transfer daily operations while retaining ownership of assets. . Outsourcing can be beneficial in terms of high market growth rates, revenue predictability, cost control and tax reduction. A service-oriented organization would find outsourcing a good method for improving services and business operations.

Technology can revolutionise banking, but it must be driven by business needs. And there will always be a place for the High Street branch, argues Paul Takac(*). Customers and shareholders [...]

Byline: Paul F. Takac In their search for optimum performance and cost efficiency many organizations have been critically examining the seemingly ever-increasing cost of, and dependence on, technology. In the course of examining possible alternative, and potentially more cost-efficient, approaches to technology management the concept of outsourcing has been widely discussed and has attracted high levels of interest among both industry and governments. Organizations are primarily driven towards outsourcing by a desire for cost rationalization, particularly through the achievement of economies of scale and operational efficiencies. By making data processing, networking and voice communications the core of its business, the outsourcer can presumably undertake such activities more efficiently. These efficiencies are to be found in people, software tools, computers, network management centres, back-up and recovery facilities and management focus. Essentially, the outsourcer's assumption is that he can do a better job cheaper than the user. Is this, however, correct? The purpose of this paper is to examine critically the concept, implementation and management issues related to outsourcing information technology services.

Electronic data interchange (EDI) is a powerful, cost saving and streamlining information technology that has rapidly gained international acceptance over the last few years. This paper aims to facilitate a clearer understanding of the issues involved in formulating and implementing an EDI strategy. In particular the paper analyses the potential benefits to be derived from EDI implementation, while at the same time outlining operational and management difficulties likely to arise as a result of implementation. The paper focuses on the inter– and intra–organisational issues which EDI gives rise to - since it is a service which entails co–operation between trading parties to gain the greatest benefits. Similarly the relationship between EDI and other related strategies, such as quick response and just–in–time, are discussed. The paper also outlines the relationship between EDI and electronic funds transfer (EFT). It argues that EDI–EFT has the potential to have a major impact in re–defining organisational cash management policies and strategies - particularly in relation to the 'float' - as well as the relationship between organisations and their respective financial institutions. The paper provides an overview of relevant work taking place internationally, with an emphasis on North American and European developments.

As markets have become increasingly more competitive and global in nature, organisations have begun thinking in terms of analogies from military strategy and warfare. Managers are seen to need to operate in a competitive and hostile environment, but also need the ability to co–operate with other organisations, some of which may be competitors. The concept of strategic alliances has therefore emerged as important in this context. This paper provides a critical analysis of the alliance formulation process so as to assist organisations in defining the nature and type of relationship that best satisfies their individual needs. Strategic alliances are a means of rationalising business operations and improving the overall competitive position of a company. The formulation of strategic alliances is important because of the sheer speed and dynamism of technological change which has opened up a wide range of new fields of activity. In the area of banking technology, the introduction of strategic alliances is increasingly viewed as an attractive option to the current diverse forms of business relationships in a multi–vendor environment. Firms have, however, experienced difficulty in defining the type of relationship that best suits their specific needs. To a significant extent this is due to the fact that a great deal of confusion exists regarding the term 'strategic alliances'. In particular, parties have difficulty in distinguishing strategic alliances from other forms of organisational relationships. This paper defines the concept of strategic alliances and critically analyses the benefits and disadvantages of entering into such relationships. It also provides an outline of the strategic alliance formulation and management process.

Smart cards are essentially cards, similar in size to a bank credit card, that contain microchips. This chip enables it to store a wide range of information. The specific amount of information can vary depending on the size of the chip. A sophisticated smart card can today be regarded as the most portable microcomputer available. While the traditional application of smart cards has been as financial transaction cards, a wide range of alternative applications have emerged in the last ten years. The most prominent among these have been within the health sector and as security instruments. The application of smart cards within the health sector is an important development which is attracting a great deal of interest on a world–wide basis &#45 with a number of trial applications already taking place. This paper critically examines the development and potential application of smart cards within the health sector. In particular it assesses the argument that smart cards can lead to significant improvements in the areas of diagnosis as well as medical record storage, thus leading to operational efficiencies to the general national medical system. The paper confirms that Smart cards, together with the information technology infrastructure required for their implementation, are therefore likely to lead to significant financial and medical benefits. Nonetheless, the paper concludes, there are significant issues of privacy which must also be addressed.