The Advantages and Threats of IS /IT Outsourcing, Questions and Answers

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

Competitive advantage that can gained by companies through IS /IT outsourcing, external strategic resources can lower long-term capital investments by leveraging core competencies through strategic outsourcing. How so ever to improve efficiency, it will reduce the cost of using outsourcers and logistics services can also benefit from a third party logistics providers improve consistently.

Reduced inventory costs: through outsourcing access to state of the art can reduce the amount of inventory required in the system through physical distribution.

capital investment reduction: the use of facilities and equipment supplier outsourcers do not have to deal with investment assets

logistics system upgrade: outsourcers can gain access to state of the art logistics capabilities, at a fraction of the cost of upgrading the own system by outsourcing logistics functions.

2.Assess the main threats of IS/IT outsourcing and put these possible threats in order based on its importance. Justify your answer.

The main threats if the IS / IT outsourcing is. First, sustainability threatened when outsourcing provider companies they turned to not have the best interests of their companies. They approach with the intent and outsources a set budget. It will appear for selection and price equivalents. A outsources side that looks out for their welfare will try to negotiate with them, and give them an opportunity to bargain.

Second, it causes great harm in the continuity of information outsourcing firm with them they do not have a professional line, the environment and business background that compliments their needs. So they have to make sure that they not only guarantees the right staff, with the right set of skills, but also a partner with outsourcing companies that understand their industry, as well as industry.

Outsourcing could result in less demand for highly skilled labour and fewer job opportunities in the country of origin . As a result there may be pressure on wages , it could eventually lead to a decline in the competitiveness of the home economy. Lastly, attention is the loss of intellectual property in knowledge transfer to other countries and, in the concrete, to the enterprise partners who can use it for their own purposes.

3. Discuss measures companies need to take in order to prevent computer systems failure.

To prevent failure of the computer systems within companies, they need to take action . safety factors are used to ensure that the design will work , and to guard against failure .