TO : Chairman, President and C.E.O. of JP Morgan Chase
FROM : IT Manager
SUBJECT : JP Morgan Chase Shifts IT Outsourcing into Reverse.
DATE : August 27, 2007.
JP Morgan Chase is a financial company with $ 1.2 trillion in assets and $ 106 billion in shareholders equity. JP Morgan Chase is one of the oldest financial services firms in the world and operates both banking and non-banking subsidiaries. Both globally and regionally. JP Morgan Chase runs an additional set of businesses including its Private Equity and Treasury Businesses, Corporate Support companies, automobile financing companies, leasing companies, e-commerce companies and other financial services businesses. With revenues of $ 56.9 billion in the US and 160,000 employees, makes JP Morgan Chase the second largest financial services firm in the US. JP Morgan Chase competes with banks, brokerage firms, investment banking companies, insurance companies, credit card companies and mutual fund companies and is the 3rd largest banking institution in the United States.
JP Morgan Chase & Co. signed a $5 billion, seven-year agreement with IBM for computer services where IBM would take on a significant portion of the bank's data processing infrastructure and help power and host mission-critical functions for the securities side of JP Morgan Chase & Co.'s operations.
Some twenty-one months later, the contract was cancelled because it was believed by JP Morgan's chief information officer, that by managing their own technology infrastructure, it would be best for the long-term growth and success of the company, as well as shareholders and after the merger with Bank One, JP Morgan Chase & Co. would gain competitive advantage, accelerated innovation and enable the company to become more streamlined and efficient while reducing costs and increasing quality.
Strategic analysis is the scanning of a businesses' environment to ascertain key...