Hrad Technika

Background
This is a classic case on IT outsourcing from the perspective of Hrad Technika- the IT
services provider and the client partner Tegan. Hrad enters into a contract to create
a new accounts payable system for the toy distributor, Tegan. The outsourcing firm
from the Czech Republic views the project as a step forward in establishing trust
and building superior client relationships. The project, however, does not take off as
expected. This leaves Hrad and Tegan in not such a happy situation and their
healthy relationship is jeopardized. The case allows the examination of how to
manage an IT outsourcing project.

Key Issues

Lack of efficient reviewers

Only Julia Jones was the expert reviewer who could provide valuable feedback
on the LLDs

The project not on a high radar

Other key projects such as the ERP implementation project required huge
efforts, was running in parallel and was far from completion

Requirements not clearly defined

Initially, they had planned to go ahead with the Waterfall Model. However,
when they moved forward with the Spiral Model, the A/P system began to
crash. This indicates that the specifications outlined in individual LLDs may
not have been comprehensive in nature.

Recommendations
It is evident that there are two important options: either to reduce the system
functionality or push the deadline ahead. Among the identified options, the
recommendation is for the latter and not the former. This recommendation is
because the decision will benefit both Hrad and Tegan as the project will be
completed with the expected outcome.
In order to ensure client satisfaction, Hrad can concentrate on his existing plan to
not recover the additional costs from Tegan and work on their internal budgeting for
the project to see how much compromise with respect to the finances can be made.
This can help revive their relationship with Tegan if the budget is largely taken care
of.
Also, in order to ensure that similar hiccups are not challenged in the future, Hrad
should get a sanction of the detailed timelines from the client and possibly a list of
the stakeholders who would provide the reviews and be highly involved in the

Prepared By

Sreemoyee Saha

EPGP IIM Indore 2016-17

vendor interactions. This would help in better estimation of the efforts required.
Thus, they would be able to set the right expectations with their clients.

Prepared By

Sreemoyee Saha

EPGP IIM Indore 2016-17