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Chevron: Outsourcing Commodity Processes in a Commodity BusinessCynthia BeathUniversity of Texas at Austin - Department of Information, Risk and Operations Management Jeanne W. RossMassachusetts Institute of Technology (MIT) - Center for Information Systems Research (CISR) June 2007 MIT Sloan Research Paper No. 4666-07 CISR Working Paper No. 371 Abstract: Faced with a large number of impending retirements, Chevron intended to downsize by outsourcing commodity services. In 2004 management recognized that taking advantage of the growing number of services available on the market required new competencies. This case describes how Chevron learned to identify appropriate outsourcing opportunities and how the IT unit - and managers of IT-enabled processes - incrementally built skills around architecture, integration, and vendor management to enable the company to benefit from outsourcing opportunities.
Number of Pages in PDF File: 22 Keywords: outsourcing, commodity process, IT product management working papers seriesDate posted: October 14, 2007Suggested CitationContact Information
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