Case Tegan/Hrad TechnikaThe aim of this article is to analyze the reasons for the failure of an IT outsourcing project and its effects on the long-term partnership of the supplier (Hrad Technika) and his client (Tegan) from each of their points of view. Hrad Technika and Tegan had a favorable working relationship for 3 long years until they encountered this problem. When Tegan's accounts payable system IT project was outsourced to Hrad Technika, both parties seemed unanimously positive about the success of the project. Hrad Technika was very optimistic about this project at the beginning and saw it as an opportunity to boost Tegan's confidence. on Hrad’s development capabilities. He saw this project as a ladder to get more work from Tegan in the future. However, the project did not come to fruition as planned, leaving Hrad in a complex situation to sort out the relationship and ensure that such a problem never occurs again in the future. Tegan had sought Hrad's help and support for their A/P. Computer system that ran on an old existing system. As Tegan was growing at a rapid rate and relying on the IT system to make payments, they wanted to upgrade to newer, reliable software that would help them over the Christmas period. Tegan commissioned Hrad Technika to carry out the development and problems began when they were unable to meet the schedule and budget according to the proposed contract, which they had won after writing the specifications and putting out a call of offers. This case gives us an in-depth insight into management. to outsource a project from the service provider side as well as the client side and gives us a broader picture of IT outsourcing. Project outsourcing A/P: Ri...... middle of paper ...... IT for example, who can define needs and requirements, as we see they bid and get information from their partners , then draw up tenders, there is no way they can decide what they want their internal teams to do. If you don't have expertise, you're better off working with partners. As per Porters Strategy Map, if this feature is your key feature, you should keep it in-house and not hand it over to anyone for development, but I don't see any options available here. Since their margins are so low and they are so close to the crash scenario, outsourcing was a good option, if it had gone well for development. The failure results from communication problems between the client and the outsourced company. The customer has not provided all essential information required for optimal operation of the system. Tradeoffs Involved: Requirements Analysis