Managing outsourcing: the CHRMS project of the Turkish Ministry of Health 2008-12.1

In 1997, the Turkish Ministry of Health began work on the Core Health Resource Management System (CHRMS) project. The Ministry contracted with Siemens-Nixdorf and the Turkish software firm Likom to carry out the project, scheduled to be completed in 1999. By 2002, CHRMS was still not complete, and Likom left the partnership. The Ministry considered cancelling the project, but the remaining partner agreed to take overall responsibility for CHRMS, and the project continued. Over the five year period since starting work on CHRMS, Siemens-Nixdorf had reorganised, handing responsibility to Siemens Business Services (SBS), who in turn subcontracted portions of the project to seven other vendors. SBS was the single point of communication between the project and the Ministry.

This vignette case, which includes four discussion questions, looks at issues arising when all aspects of a project are outsourced and/or subcontracted, including questions of cultural differences.