Function Outsourcing
IT Function Outsourcing
The advancements in the field of information technology have paved way for digitization of operations and automation of functions. In the recent decade it has become a need which is the source of cost reduction, efficient operation and competitive advantage as well. This is the reason; almost every organization is seriously considering the option of introducing IT in its operations. Since information technology is the combination of computer technology and communication technology, it has specialised body of knowledge and people with specialised skills are required in the field. Many organizations have developed an altogether new department of IT to look after the routine operations, maintenance of IT hardware and software and perform support functions whenever required.
Keeping in view the vast scale at which IT operations are conducted and the standardized software tools coming in the market to meet the requirements of many organizations in general, IT experts have formed IT organizations which perform IT function of the organizations on their behalf. It is known as outsourcing and this paper will cast light upon various aspects of IT outsourcing.
Determining Factors to the Decision of Outsourcing
The most important factor behind outsourcing is the lack of specialised skills in every organization. As mentioned earlier, not every organization possess the required level of expertise and resources to manage its IT functions. Hence, outsourcing is an ideal situation in which the organizations free themselves from the responsibilities of maintaining infrastructure, upgrading the tools, and providing the support services. Examples include, web hosting and email hosting to third party, making contracts for design, implement and support the IT network, data backup, ensure security and perform routine maintenance functions. The organizations do not hire any IT expert themselves rather the IT organization maintains their desk there. It is also possible that the IT team is available on call and quick support is provided...
One of the most significant disadvantages, and potentially dangerous aspects, to outsourcing is the transfer of sensitive data, according to Klosek. Auditing outsourcers may subcontract their services, unless it is specifically stated in the contract that they cannot do so without the organization's consent. If subcontracting does occur, and is not provided for in the contract, the outsourcer may not be liable for functions that were subcontracted. However, just as financial scandals
Strategic Management Concept: Outsourcing Strategic Management: Ourtousrcing Definition of outsourcing Outsourcing is defined as the contracting another person or company to perform a specialized function (Lacity and Hirschheim, 1993). Outsourcing can also be defined as contracting out a business process to a third party. In the current business environment, all business will outsource in some way. The term outsourcing not only refers to the large contracting of firms to perform specific functions, but
This virtually means that the international community could soon observe mutations in the type and nature of the outsourced processes. In general terms, companies are looking to outsource growing numbers of more complex operations as they are not willing to assume the risks and make the necessary investments. In this order of ideas, they outsource the operations to firms which have already made the investments and assumed the risks. "Organizations
Future of the Outsourcing of British White-Collar Jobs Outsourcing is the term given to the work that is done by anyone other than the full time employees of an organization. Outsourcing is the activity whereby certain elements of the processes in an organization are divested by an organization that bring in reasonable or little profit with respect to the capital invested. These activities that bring lesser profits than required or peripheral
Therefore, the standpoint of social embeddedness is a tool that offers to provide a clear picture if one wants to comprehend the contribution of the relational factors in the success of outsourced IS projects (Rai, Maruping and Venkatesh, 2009). If one is to increase his/her comprehension and develop an insight about how to monitor and control outsourced IS projects, Johns' (2006 as cited in Rai, Maruping and Venkatesh, 2009) suggestions
8 million in reduced utilities costs" (Young 56). Thus, Sun has reduced costs significantly, while keeping its workforce solidly on American soil. There are ways for smaller companies to utilize these types of solutions, as well. Flextime, telecommuting, and even satellite offices can help save money while creating a more motivated and productive workforce. Often, after implementing flexible work options such as these, output increases, because employees are happier and
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now