PERFORMANCE ANALYSIS AND OPTIMIZATION PROPOSAL USING BALANCED SCORECARD FRAMEWORK FOR IT OUTSOURCING COMPANY, PT IT EXPERT SYSTEM

• Main Author: Hasan, Ferdy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/82990
• Institution: Institut Teknologi Bandung

IT outsourcing industry in Indonesia is experiencing rapid transformation due to the rising demand for digital solutions and technology experts. The revenue growth for the IT services market in Indonesia is projected to more than double, increasing from $4.89 billion in 2023 to $9.07 billion in 2028. Despite the growth trend in the IT sector, the company's financial performance has declined. PT IES's annual revenue declined from Rp. 3.060 billion in 2021 to Rp. 2.64 billion in 2022, and further to Rp. 1.68 billion in 2023. As a result, the company has had to incur debt to pay employee salaries since September 2023. This financial strain is partly due to 46% of their IT professionals being idle and a lack of software development projects. The research aims to identify the main causes of the business problems faced by PT IES, establish suitable business strategy for PT IES business model determine the appropriate performance management system framework for implementing business strategy and achieving targets at PT IES, and establish the suitable Key Performance Indicators for the performance management system. The research analyzed business issues from both internal and external perspectives forming the basis for identifying the root causes of the business issues. Root cause identification was conducted using the Current Reality Tree (CRT) the company's business issues. The root cause of the business issue is the absence of a performance management system. This absence has resulted in an ineffective appraisal system and no decision-making guidelines. The result of the study is Balanced Scorecard framework proposal consist of 4 perspectives, 9 strategic themes, and 18 strategies with key objectives for each strategy. These 18 strategies serve as the basis for cascading strategies into each division, totalling 92 business strategies and objectives with 92 KPIs adapted from Performance Prism catalog created by Cranfield School of Management. The research results provide business solution for PT IES quantitative performance measurement in service companies, where many aspects are intangible.