| Prudential has revealed that they plan to review the | | | | any standard measurement of departmental |
| organizational structure of Prutech. Many experts | | | | performance and effectiveness. Having IT metrics is |
| have suggested that this review will inevitably lead to | | | | very useful because it enables IT companies to also |
| a shake-up of their human capital. At this junction, it | | | | assess how satisfied their clients actually are with the |
| is worth mentioning that rising costs is one of the | | | | service they receive. Metrics are also useful for |
| major challenges the IT industry is currently facing. | | | | ensuring compliance within the IT industry. It does |
| Therefore, it is little wonder that companies like | | | | appear that many firms are beginning to recognize |
| Prudential are considering offshore IT employment in | | | | the usefulness of IT metrics and as such, they are |
| order to save money. | | | | reluctantly agreeing to incorporate it into their |
| We at Quanta and other industry experts do not | | | | organizational structure. |
| share the view that outsourcing IT work will always | | | | Another major IT story currently in the news is to |
| lead to a reduction of operational costs. We have | | | | do with the Hummingbird takeover. Enterprise |
| argued that any IT work outsourcing will not lead to | | | | management software firm Open Text has |
| a significant reduction in aggregate costs, but rather | | | | announced that it is set to axe over 500 jobs as a |
| it could lead to the development of inefficiencies | | | | result of its acquisition by Hummingbird. Open text |
| within the organization. The shake-up would also | | | | has somewhat re-branded its image and has also |
| mean that many IT jobs will be lost in the UK. This is | | | | restructured the services it provides. They claim that |
| because Prudential currently employs 500 IT staff | | | | the redundancies were unavoidable because they are |
| who work in Prutech. | | | | a direct consequence of the merging of Hummingbird |
| There is also news that IT companies are beginning | | | | and Open Text. The company is also set to partner |
| to explore the possibilities of IT metrics. It has been | | | | with companies like Microsoft and Oracle. |
| deduced that the IT industry does not really have | | | | |