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1、ISSN1940-204XUnilever:TheFinancialImplicationsofOutsourcingInformationTechnologyServicesinaGlobalOrganizationBarbaraE.Tarasovich,SacredHeartUniversityINTRODUCTIONwillfocusontheactualbusinessprocessoutsourcingdecisionmadebyUnileverin2006.AdiagramofUnilever’sITUni
2、leverproductsarefoundontheshelvesofalmosteverydepartmentispresentedinTableI.largegrocerystore,drugstore,andsuperstorearoundOutsourcingofITservicesisabusinesstrendthathastheworld.Althoughthecompany’snameisn’tfamiliardramaticallyincreasedinthepast10yearsandisexpec
3、tedtoeveryone,Unilever’sbrandsarehouseholdnamesthattocontinue(PluggeandJannsen,2009).TechnologyisincludeVaselineIntensiveCare,Dove,Hellmann’s,Ben&Jerry’s,constantlychangingandtheoutsourcingofITservicescanAxe,Knorr,andLipton.Thecompany’smissionistoaddprovidethela
4、testtechnologywithouttheorganizationmakingvitalitytolife.Toaddvitalitytoitsownbusiness,however,largecapitalinvestmentsinnewequipmentoracquiringtheUnilevernotonlyneededtofocusonincreasingmarketskills(humancapital,knowledgebase,andsoon)neededtoshare,butalsoonreduc
5、ingoperatingcostslevels.ThemanageITservices.ManagementaccountingprofessionalsInformationTechnology(IT)departmentplayedakeyroleneedtopartnerwiththeITdepartmenttocarefullydevelopinsupportingthismissionbydevelopinganunerringfocusabusinesscasethatidentifiescost-cutt
6、ingoptionsandonthebottomlinewhilealsoenablingemployeestodotheirtheimpactofanoutsourcingagreementonselling,andjobsmoreeffectively.generalandadministrativeexpenses,whilealsoconsideringInthehighly-competitiveconsumerproductsindustry,availabilityandsecurityofservice
7、s.It’salsocriticaltohavethecompanyfocusedtheirattentiononcorecompetenciesagoodideaastohowcostsarerecordedinthefinancialtoprovideasustainablecompetitiveadvantage.Whilerecordsfordifferentoutsourcingarrangements.SomeoftheITinfrastructureservicesarecriticalforconnec
8、tingendprojectcostsrequirecapitalization,whileothersarerecordedusers,theyaren’tasourceofcompetitiveadvantage.Theasimmediateexpenseandimpacttheincomestatementofcompany