AstraZeneca and IBM Outsourcing Contract Case Study Analysis Report

This comprehensive report examines two distinct aspects: the AstraZeneca and IBM IT outsourcing case and the application of mobile commerce in the healthcare sector. The first part of the report delves into the specifics of AstraZeneca's outsourcing contract with IBM, analyzing the mistakes made by both companies, the reasons behind long-term outsourcing agreements, and the factors that contributed to the failure of the 2007 Service Level Agreement (SLA). It also explores the provisions within the 2001 SLAs designed to protect both AstraZeneca and its vendors, and justifies the preference for arbitration over legal proceedings. The second part of the report focuses on mobile commerce in healthcare, providing an overview, related research, and an analysis of its strengths, weaknesses, advantages, and disadvantages. The report concludes with a self-evaluation and a summary of the author's findings, highlighting the challenges and opportunities presented by mobile technology in the healthcare industry, including the impact on telemedicine and healthcare applications, and emphasizing the importance of understanding these technologies for business managers in the health sector.

Running head: IT INFRASTRUCTURE MANAGEMENT
AstraZeneca Case Study
Name of the Student
Name of the University
Author Note

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Table of Contents
Task A:.......................................................................................................................................2
1. Mistake done by AstraZeneca............................................................................................2
2. Mistake done by IBM.........................................................................................................2
3. Reason for outsourcing contracts for five or more years...................................................3
4. Reason for making mistakes by both the corporation........................................................4
5. Justifying whether 2007 SLA was doomed to fail.............................................................4
6. 2001 SLAs provisions that protect AstraZeneca and the vendors.....................................5
7. Reason for preferring arbitrator instead of filling lawsuit in court....................................5
Bibliography...............................................................................................................................6
Task B......................................................................................................................................10
1. Introduction......................................................................................................................10
2. Overview of Mobile Commerce.......................................................................................10
3. Related Research..............................................................................................................11
4. Strength and Weakness....................................................................................................12
5. Analysis (disadvantage and advantage)...........................................................................12
6. Self-Evaluation....................................................................................................................14
7. Conclusion...........................................................................................................................15
References................................................................................................................................16

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Task A:
1. Mistake done by AstraZeneca
AstraZeneca is the leading biopharmaceutical companies in the world. AstraZeneca first
signed an agreement with IBM of a global outsourcing for seven years, later they decided to
break the contract in 2011 which result in a court case. IBM filed a case against AstraZeneca
for living the agreement before seven years was completed. The scenario turned out be one of
the biggest mistake that the deemed organisation has done. Due to such mistake
AsreraZeneca has terminated SLA. The IT capabilities of AsteraZeneca depends on R&D.
Since the technique of AsteraZeneca has changed rapidly of which the present technique
could not support the other vendor applications. For all the global vendor’s similar
infrastructure were included which has changes the business rapidly. AstraZeneca did not
realize that the business might change rapidly before the contract gets complete. AstraZeneca
is crucially dependent on the capabilities of the IT. They have eventually failed to cover the
critical path of the contract. It has even impacted the goodwill of the AstraZeneca in the
commercial market citing its unprofessional nature.
2. Mistake done by IBM
It is already known by IBM that the contract of IT outsourcing that are for long-term are
generally difficult to change and in the first two years they accrue the profit with major
investment and then set up the service to customize and made profit in margin within two to
three years. IBM was basically interested in making a global outsourcing contract with the
AstraZeneca as it is the leading biopharmaceutical companies in the world. And for the
outsourcing companies it was very helpful. They did not cover every details for the
termination of the contract. The faults were evident for both the organisations and IBM made

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the mistakes in the contract and negotiation processes. However, the core mistakes done by
the IBM with this agreement has been listed as follows:
 Due to the outcome-based applications the deal of IBM has failed.
 The designing of the contract was not done for that pace.
 The contract has a ground-breaking model.
 Some of the obligation for the contract was terminated.
 The outsourcing vendors were not precisely dividing.
3. Reason for outsourcing contracts for five or more years
In outsourcing contracts, scientific storage and server hosting, commercial and supply chain
operation, network and communications are included which had roll out the reporting
systems, new technologies, and apps more quickly and efficiently. The company had a
consistent infrastructure across the global site. There are huge vendors trusting and investing
on contract that they had made. The vitality of outsourcing lays on the fact that the
organisations who adopt outsourcing services from other wants to ease their organisational
process and frequently changing the outsourcing service provider from them would be
complicated. On, the contrary, the outsourcing firms also seek out for stability and keeping a
shorter frame of contract makes the organisational nature volatile. The similar case has
happen between the AsteraZeneca and IBM. They had a long-term outsourcing agreement
that could not be change frequently as the time for investment is for a long period. The deals
of the vendors were accepted for profit. At the beginning there were major investment in the
plan of outsourcing, in the first two years, major investment were made by the vendors with
huge outsource that has customized and set up the service. However, by the end of the
contract they have expected a margin of profit within two or three years. Thus, due to this
reason, large outsourcing contracts are done for five or more years.

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4. Reason for making mistakes by both the corporation
The corporation parties that were involve are from two different field, the IBM is an IT
application and the AstraZeneca is a biopharmaceutical company. Neither of this parties were
focusing on the problem of long-term outsourcing. The most significant problem that was
associated with the contract was the lack of knowledge regarding the services they were
attempting to adopt. There was a lack of knowledge of outsourcing and preparation made by
the client. They vision that the vendors were from the same level but the reality was just
opposite of it. Later they release the issues that were made in the contract. AsteraZeneca was
following a ground breaking model that was hard for maintaining a huge outsourcing
contract. The deal failed for the reason of using specifications that was outcome-based that
was basically used among vendors for the innovation. Also the business of AstraZeneca was
achieving a rapid changes and the contract that was done between both the corporate was not
for this reason.
5. Justifying whether 2007 SLA was doomed to fail
As gone through the case study it seems that 2007 SLA was doomed to fail. The reason for
this is that the AsteraZeneca did not realise what consequences would appear in future with
the agreement that they have made. The contract was signed without any proper base or
outline for the future sustainability of their organisational relationship with the client. The IT
infrastructure of AstraZeneca is mainly based on R&D which seems to be experimental and
may cause failure. Regardless of termination of the contract. The end of the contract services
and fees had a vague provision. The agreement was made for about seven years. The time of
agreement is most reliable for the outsourcing contract. However, when they started, it has
lead behind due to the vendor growing rapidly. The investment done into the business were
huge to gaining more profits. However, changes have been lead in the IT application
drastically.

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6. 2001 SLAs provisions that protect AstraZeneca and the vendors
A new IT outsourcing model has created by AstraZeneca that replace the IBM services. The
company now uses multiple contracts in relation with HCL, Wipro, AT&T and
Computacenter. With the principle of ‘fix first, pay later’ the 2001 SLAs provisions protected
AstraZeneca which means that when there is any urgent problem occur in IT, the corporate of
AsteraZeneca and vendor first fix the issue without questioning about the cost. The IT service
deals with standard provisions that covers the contracts for SLAs and pricing and for the
policy of cooperation. The cooperation policy includes 13 principles of which the
collaboration terms were specified. When the vendor decided to provide the solutions fast,
AstraZeneca had agreed to make the payment faster to the vendor. When a conflict arises in
the contract, both the parties are given a chance to appeal with the independent arbiter and
oversees the policy of cooperation.
7. Reason for preferring arbitrator instead of filling lawsuit in court
The main reason of preferring arbitrator by both the parties is because of it is less expensive,
less time consuming, and less confrontational than filling a lawsuit. The organisational
resources that includes the human, financial and other resources are also less exposed in the
deemed process. Additionally, the legal matters are very complex procedures that can hamper
the sustainability of the organisation in the long-run. Arbitrator has a significant advantage in
court. It can control the process of the party, for shorter time and with minimum cost. It has
privacy, flexibility, and awards are fair, enforceable and final. Arbitrator is ‘a fair and more
just process’. Arbitration has understood that AsteraZeneca reason for breaking the
agreement. Both the parties use outcome-based specifications in their contract that has
encourage the vendors’ innovation. Even in the year 2007, a ground-breaking model contract
was considered. However, the model had failed and there was a rapid change in the business
of AstraZeneca. The pace that has occur was not the reason for making that contract.

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Bibliography
Alonso, J. M., Clifton, J., & Díaz-Fuentes, D. (2015). Did new public management matter?
An empirical analysis of the outsourcing and decentralization effects on public sector
size. Public Management Review, 17(5), 643-660.
Bahli, B., & Rivard, S. (2017). The Information Technology Outsourcing Risk: A
Transaction Cost and Agency Theory-Based Perspective. In Outsourcing and
Offshoring Business Services (pp. 53-77). Palgrave Macmillan, Cham.
Chakravarty, A., Grewal, R., Sarker, S., & Sambamurthy, V. (2014). Choice of geographical
location as governance strategy in outsourcing contracts: localized outsourcing, global
outsourcing, and onshore outsourcing. Customer Needs and Solutions, 1(1), 11-22.
del–Río–Ortega, A., Gutiérrez, A. M., Durán, A., Resinas, M., & Ruiz–Cortés, A. (2015,
June). Modelling service level agreements for business process outsourcing services.
In International Conference on Advanced Information Systems Engineering (pp. 485-
500). Springer, Cham.
Jackson, J. D. (2016). Classical rational basis and the right to be free of arbitrary
legislation. Geo. JL & Pub. Pol'y, 14, 493.
Mohamed, A., Mohammed, A. H., & Abdullah, M. N. (2015). Service Level Agreements:
Governance in Outsourcing Facility Management. JURNAL TEKNOLOGI, 73(5).
Omizzolo Lazzarotto, B., Borchardt, M., Pereira, G., & Almeida, C. (2014). Analysis of
management practices in performance-based outsourcing contracts. Business Process
Management Journal, 20(2), 178-194.
Sfondrini, N., Motta, G., & You, L. (2015, April). Service level agreement (SLA) in Public
Cloud environments: A Survey on the current enterprises adoption. In Information

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Science and Technology (ICIST), 2015 5th International Conference on (pp. 181-
185). IEEE.
Shapiro, S. A., & Murphy, R. W. (2016). Arbitrariness Review Made Reasonable: Structural
and Conceptual Reform of the Hard Look. Notre Dame L. Rev., 92, 331.

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Mobile Technologies and Commerce in Health Sector
Name of the Student
Name of the University
Author Note

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Abstract:
The opportunities of rising a service for the customers increases the power and flexibility of
wireless. Presently in the business organization, mobile commerce has entered into the retails,
finance, services, information technology services and telecommunication. Mobile commerce
is a new interest of today’s firms. In this report the current use of mobile technology and
commerce will be discussed. It will give the overview of the mobile technology and the user
will be able to understand the use of the technology and there advantage and disadvantage in
the health sector. The paper will contain an analysis of the research done on the healthcare
depart with the use of Mobile Commerce Technology which is basically an M-Commerce.
This paper helps to evaluate the strength and weaknesses of the use of mobile commerce and
analyse the advantage and disadvantage of it in the industry. The business manager of the
health sector particularly those who do not have the knowledge of the IT background need to
understand the key elements and the basic problem that come with the mobile commerce. It
will contain the challenges that the health sectors are facing with the use of Mobile
Commerce. In the final section of this paper, the author will express its view of what it has
learnt from the knowledge that has gain from the planning of the report and the research done
on the mobile technology and commerce that has been use in the healthcare sector.
Keywords: Mobile Commerce, Health Care, Security, healthcare application, telemedicine

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Task B
1. Introduction
This paper will discuss about the M-commerce technology use in the health sector. It
will establish a strong vision and provide a strategy to evaluate the application of the use of
mobile device. When planning to introduce the mobile technology in the health sector it
become necessary that the health sector support the processing of the technologies in the
industries. With the revolution of mobile technology, service provider and patients can access
information and help connect with each other. There are lot of applications for healthcare
namely diagnostic monitoring, patients scheduling, administration, and telemedicine that use
the M-Commerce. There are benefits, challenges with the mobile commerce application. In
this report it will outline how mobile commerce in heath sector change the healthcare
delivery services in the upcoming 10 years. In the final section of the report, the view of the
author will be provided from the knowledge that it has gain from the evaluation, analysis and
research done for the M-Commerce Technology use in the healthcare sector.
2. Overview of Mobile Commerce
Mobile devices are easy to move and easy to carry anywhere. The platform of mobile
technology is the fastest-growing technology in the history. M-commerce is a new concept
associated with the health sector. Mobile commerce also called as M-commerce has a
monetary business that has conducted through a mobile communication network (Herterich
et al., 2015). One of the author has define M-Commerce as activities that relates the
commercial transaction of the communication networks which has interface with the mobile
devices. There is another concept that define M-Commerce as an electronic application which
serves as data processing, communication and purpose of exchange (Rahimi et al., 2014).
The mobile devices currently include mobile phones, personal pagers, vehicle-mounted

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technology, wireless laptop, and mobile-enabled hand held computers in which the
application of M-Commerce is implemented. User can install the application and use it on
their device.
3. Related Research
Today the industry of mobile has generated a revenue of $ 1.6 trillion. According to
American Medical Association (AMA), 60 % of the Emergency Medicine Doctors usually
feel burn out (Hamilton, Tran & Jamieson, 2016). As they has to work in a job stress where
maximum of the time is spend on data entry and gathering patient information. According to
National Centre for Biotechnology Information (NCBI), 70 % of the errors in medication is
found because of the errors in prescription (Horinouchi et al., 2017). For the healthcare
industry, use of paper for tracking the details of the patients has become a huge burden.
Mobile devices has now taken this situation to a new level by eliminating the need of using a
paper for keeping the record. This has help in increasing the accuracy of diagnostic. From
2016 research of mHelath statistic, it has found that 93 % of the physicians has realize that
the use of mobile health apps has improve the health of the patients (Okazaki, Blas &
Castañeda, 2015). Doctors and nurses could keep descriptive and accurate notes of their
patients. They can run automatic checks on Mobile apps for prescriptions and take decisions.
This has shown a result that prescription errors has gone down in a significant way. With this
mobile devices the symptoms and cause of infectious diseases and pathogens are recognize
faster. With the use of telemedicine apps, video conferencing has become possible and now
doctors and patients can share their information without any physical meetings (Koivunen &
Saranto 2018). Even healthcare professionals can access their information from the portable
devices. They can easily get their guidelines, books, reviews, journals and medical literature
from their smart-phones.