CIO's Notes
The CIO, Don Geekbine, was informed of the decision and was asked to perform a risk assessment of the outsourcing
process. As part of his initial analysis, he prepared the following notes, in no particular order, which
were incorporated into his briefing points:
- All applications were developed internally; reservations are fairly standard and could be easily outsourced;
sensitivity analysis, flight and crew scheduling have some specific requirements that are only available
with internally developed solutions.
- All systems were written in COBOL; many programmers are retiring, and those available command higher
salaries.
- US programmers and operations are located in an economically depressed area; workers with eliminated
positions will have problems finding new jobs.
- European work rules have long lead times for the elimination of jobs.
- There is a need to discuss transferring programming to low-cost locations such as India.
- The CFO indicated concern regarding compliance with the US Sarbanes-Oxley Act of 2002; Payment Card Industry
Data Security Standard (PCI DSS) compliance is also a concern.
- Equipment and data centre facilities are currently leased. What will be the course of action for the
leases?
- Operational processes will require governance to ensure satisfactory performance of key project deliverables,
key processes and system availability.
- Don has not performed risk assessments before and is unfamiliar with the issues that should be considered.