Problem: You work for an HMO as director of Information Systems Department. Your organization is considering off shoring medical records processing and some medical services such as reading chest X-rays and mammograms to an Asian country. This will help organization to reduce its operating cost by at least a million dollars a year based on an internal study and reduce the headcount by 10. The action will improve the HMO's cost structure and its competitiveness in the industry. If the organization decides to offshore these services, it must sign a ten-year contract.
Next week you are invited to attend a meeting to discuss this action and consider its advantages and disadvantages to your organization. Would you support this decision? Why or why not?