The case is based on Kodak and its development of an IT function within the company. The IT function comes under the corporate information systems (CIS) department of Kodak and Katherine Hudson was appointed as its head in 1988. She planned to substantially change the IT function to dominate the industry. The initiated several projects that included outsourcing several operations to IT specialized corporations. The data systems, telecommunication facilities, and computers were outsourced to DEC, Business Land, and IBM. The case covers the complexities in managing the IT function of a business that includes partners.
1- Why did Kathy Hudson make such a major change in IS resource management at Kodak? What factors contributed to her decision to outsource data center, telecommunications, and PC services to IBM, DEC, and Business Land?
2- Do you agree with her philosophy and approach for selecting outsourcing partners and negotiating the agreements? What would you have done differently?
3- What advice would you give Hudson concerning long-term management of Kodak’s “networked” IS organization?