IT Outsourcing Mediation: Resolving WeRunIt & Condy Software Dispute

This mediation report details the process of resolving an IT outsourcing dispute between WeRunIt, a sporting event management company, and Condy Software. The report covers key aspects of their agreement, including terms and conditions, cost and payment terms, contract duration and revenue sharing, data privacy and security measures, and operational responsibilities. It emphasizes the importance of clearly defined terms to avoid conflicts and mismanagement, highlighting the agreement on annual reviews of terms and conditions, adherence to payment schedules, and a three-year renewable contract. The report also addresses data protection responsibilities, the need for strong password policies, and prohibited actions to safeguard WeRunIt's image. Ultimately, the mediation aims to establish a collaborative working relationship between the two companies, resulting in cost savings compared to WeRunIt's previous in-house IT arrangements.

Running Head: MEDIATION
Topic: Information System Professional
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The terms and conditions governing the agreement between two parties are essential. It is
through the terms and conditions that conflict and mismanagement of a partnership get avoided.
The validity of the terms and conditions was discussed, and the team agreed that due to the
change in business requirements and the cost incurred while implementing the changes, the terms
should be reviewed once per year. However, before the reviews get altered, the terms and
conditions must be strictly followed
In most cases, the cost and payment terms get attributed to the failure of most
agreements. The two parties agreed on the cost to be incurred to obtain the services offered by
Condy Software Company. Condy Company indicated that the first payment was $400,000. The
team arrived at the cost after breaking down the several activities required in the development
process. These activities include database and website development, financial analysis tools,
hosting of the website, support, and maintenance of services among others. However, it got
indicated that the years preceding would be charged at the cost of $100, 000 per annum. The two
teams also agreed that the payments should be made on the 14th day of every year.
Defining the contract between WeRunIt Company and Condy Company is essential. The
two parties agreed that they were on a three years renewable contract. The WeRunIt Company
could break the nature of the deal should it find it not helpful to its wellbeing. While discussing
the contract, the Condy team indicated that it would provide Ads based on providing more
income to the companies. The two teams agreed that they would share the revenue in a ratio of
5:4 between WeRunIt and Condy Company respectively (Minetaki, K., & Nishimura, 2010).
The vulnerability of personal data determines the privacy and security of a company. The
two parties agreed that Condy Company is responsible for the protection of the users’ data by
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ensuring that it is encrypted. Recovery and backup methods should be introduced to enhance the
security of the company. The two companies that the company should provide the users create
strong passwords through right password policies.
The definition of the company’s operations is vital in this kind of an agreement. The
actions determine the roles of the company (HIMSS, 2017). Various activities were discussed
and agreed upon by both teams. One of the operations was financial analysis. It was indicated
that Condy Company would provide support when needed to ensure that WeRunIt Company is
running consistently.
The company needs to come up with a compatibility matrix indicating the prohibited acts.
Condy Company will enforce these banned acts while implementing the website and the
database. One of the actions that were prohibited by both parties is uploading content that
jeopardizes the WeRunIt Company’s image. This kind of a response can lead to a massive loss of
customers (Pray & Pillsbury, 2016).
The accounts of the users who jeopardize the rules of the company should get blocked.
The several ways in which an individual can undermine the image of the company was
discussed. These include posting of prohibited content or trying to hack into the system.
According to the team, a user can be blocked from accessing the account temporarily or
permanently upon the decision of the company (ICHIT 2012, & Lee, 2012).
In conclusion, the governing terms above will ensure that the two companies work in
tandem while providing the services as required by the users. The cost incurred using this
method is better than the older method used by the WeRunIt which used $600,000 annually.
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References
Minetaki, K., & Nishimura, K. (2010). Information technology innovation and the Japanese economy.
Stanford, California: Stanford Economics and Finance in association with University of Tokyo
Press Japan and NUS Press Singapore.
ICHIT 2012, & Lee, G. (2012). Convergence and hybrid information technology: 6th International
Conference, ICHIT 2012, Daejeon, Korea, August 23-25, 2012, Proceedings. Berlin: Springer.
Pray, L. A., & Pillsbury (2016). Leveraging food technology for obesity prevention and reduction
efforts: Workshop summary. Washington, D.C: National Academies Press.
Healthcare Information and Management Systems Society. (2017). HIMSS dictionary of health
information technology terms, acronyms, and organizations.
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