Management Information System Essay Example | Topics and Well Written Essays - 750 words

Management Information System - Essay Example competes with a host of other financial institutions such as banks, brokerage firms, insurance companies among others hence there is stiff competition. As a way of attempting to position itself better in the market, the company sought to outsource its IT infrastructure to IBM, a computing giant as a result of different reasons. First and foremost, this is an attempt to add value to their company among employees, clients and shareholders by improving efficiency as well as reducing costs while at the same time improving quality. Given that IBM is a renowned computing giant, JP Morgan thought it would be a wise decision to incorporate this company as a way of trying to portray its image in a better position. In this case outsourcing would add value in that IBM is a well established computing giant often treated with great esteem by various stakeholders such that its incorporation by JP Morgan would attract a positive response from different stakeholders. By virtue of running several business entities, JP Morgan thought that by scaling its IT expenditures, it would reduce its actual needs of paying full costs that would be based on projections made earlier. Therefore, it can be noted that JP Morgan sought to reduce costs on its part by centralizing the IT business to one big, reputable company which is IBM computers. In actual fact, JP Morgan simply wants to take a precautionary measure in the face of competition against other major financial giants such that it thought outsourcing would help spruce its image as well as help reducing expenditure by centralizing its IT issues to one computing giant. The main problem raised here is that of the overuse of traditional means of processing information during the contemporary time of digital age where new information and technology is reigning supreme. The result of the use of old means of processing information is failure to access information readily when it is needed to combat an otherwise imminent disaster. FBI in this