RBS Computer Failure

1) Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.

The competitive that the organization acquires or develops it attribute or the combination of the attributes, that allows the organization to outperform its competitors. Those attribute can also include to access the natural resources, which is such as, high grade ores, or inexpensive power, also, it can access to highly skilled personnel. Technologies like robotics or others information technology that can provide the competitive advantage, and part of the product itself, is as an advantage to the making of the product, which is aid in the business process, for example, the identification and the understanding of customers itself.

Outsourcing is driven by the desire to reduce the costs, by buying an consisted set of scalable processes which is shared by across number of the organizations, after that it follows that none of those areas should be sources for the unique competitive advantage.

Once under the wing of third party, they will be no longer unique, but shared. They also are engineered by the lowest possible cost whilst with meeting agreed service standards', they will also be efficient, but not necessarily effective.

Lastly, outsource elements that are process to provider which can be delivered to the same output at the lower cost, but it also should be clear, in that so doing, the only competitive advantage accruing will be transient to lowering the costs. So any advantage soon that passes because it is shared across provider client base, that who is will likely be direct to competitors, as well being easily imitable by others outsourcing provider.

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...run of the profits, meanwhile the income increase of the consumer based are strained. Beside the benefit of the outsourcing, there are some of disadvantage in outsourcing which are the risk of exposing the confidential data. When organization outsource human resource, and the payroll and the services, with that outsource it a risk if exposing confidential company information to the third party or in other words, outsourcer. Although outsourcings most of the times are for cost effective or in other words are cost saving, they are hidden costs that involved in signing the contract while signing the agreement across the international boundaries could expose the serious threat. And other information about the outsource are vendor may be catering the expertise to multiple organization at a time. With that situation, vendor will lack on completed the company projects.