Global Business: Outsourcing

3170 Words13 Pages
Competitive advantage by using IS/IT outsourcing is needed in business operation nowadays to outperform the competitors. The main reason for companies to go for outsourcing is related to the skilled IT resources and ability to stay technically updated with the latest technologies that competitors have been using. In addition, one of the contributing factors on doing outsourcing is IT outsourcers or service providers are seen to have access to highly skilled people and their certain area of expertise that the companies is missing. There are few other competitive advantages that can be gained by companies through IS/IT outsourcing as stated in below. First, the company can cut cost of their payroll for employees because IT professional and technician are expansive in their salary perspectives. IT professionals often have large salary requirements and depending on the size of your business, you may not be able to justify paying that much salary (Luke Arthur 2013). This is cleared factors that can be gained in order to cut cost of paying salary to the employee, and also becoming a risks if hiring inexperience employee that is unknown they are capable or not of doing the job that can caused harm to the company. Second, the company also can reduce overhead or the need of expanding room and space for employee. For example, the banking sector companies want to key-in data of the cheque. Because of large number of cheque needs to be key in, they decided to increasing the office space and staff also. However, the current location is very expensive and there is no room to expand. They can outsource this operation in order to reduce the need for office space to another company that is capable and having enough resources to handle and manage t... ... middle of paper ... ...hose thing to be happened in any companies. Therefore, in order to prevent any computer system failure, There are hardware requirement and compatibility, software updating and upgrading, installing or updating antivirus software and firewall to prevent any unwanted malicious software, frequently maintenance, find a suitable network and connectivity service provider, provide a specific training and certain rules and regulation to avoid human error, and lastly, doing backup in several location to preventing the data loss from an unexpected incident.it is suggested for the companies that must to plan these measures before it causing failure to the computer system. Based on my personal view, these suggested measures will ensure the companies being alert and prepared from the beginning, if there any cases, the companies will know how to respond and counter the problem.
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