NTUC Income of Singapore (A): Re-Architecting Legacy Systems

By Neerja Sethi & D. G. Allampalli

Abstract

The case describes various information technology (IT) initiatives undertaken by NTUC Income Insurance Cooperative Limited, Singapore, from 1980 to 2002 to be a leading player in a highly competitive market. Although early IT adoption, such as computerisation, online marketing, e-commerce and web services enabled the cooperative to attain a state-of-the-art front-end and a low cost service delivery model, its back-end legacy applications and architecture were still antiquated in 2002. Lack of flexibility, poor connectivity to the Internet and new devices, lack of maintenance support for the hardware and software, and frequent breakdowns of the mainframe forced the Chief Information Officer (CIO) to mull over a re-architecting project in mid 2002.

Although the legacy systems served NTUC Income satisfactorily for the last two decades, three breakdowns from mid-2002 to early 2003 created a nightmare for the IT department and compelled the CIO to contemplate its upgrading, for which he had three options: build in-house or outsource, or buy a ready package to customise. Describing the pros and cons of these options, the case provides comparative profiles of two bids: one by a local vendor to build a new system and the other an international vendor, eBao, a young upstart from China, to buy a ready package and customise it. Considering the technology risks and possible impacts of the re-architecting project, what should the CIO do - build or buy?

This case can also be used with The World's First Web Services Community Portal: BigTrumpet.com of NTUC Income, Singapore

Issues: Integration of Legacy Systems, Web Services Technology and IT Outsourcing

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