Question 1: Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Outsourcing can be defined as one option for the company to using the outside skills, for example like foreign worker or machine in term of expertise or skills that they don't have within their organization and from that, the option is they will turn to outsourcing to solve their problems. Now days, many of business using outsourcing for what they need to serve their customers, both internal and external and also to solve the problem. In business too, the concept is external customer is the entity that ultimately purchases company product or services, while an internal customer is the company own employees or shareholders.
The businesses can obtain both products for example like machine parts, and services like payroll, through outsourcing and from that, the management will be more efficient and become professional. The example of business are using outsourcing is usually like manufacture because they need the new skills, new experience and also knowledge to learn for their business operation. In other words by using outsourcing as a formation company, the business will gain many of advantage and it depend on the type of business for example like case study Royal Banking of Scotland, they also use skills from the outsiders from Indian because of they want to learning new skill, cheap labor cost compare to national worker and also the commitment of work.
Firstly for the instant time, the outsourcing will allows companies to seek out and hire the best experts for specialized work. for instant time, the company will hire skill in term of worker. When the company out...
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...of banking. But the case of Royal Bank of Scotland, they don't have back-up and from that, they lost all the data. This will make them hard to identify back the previous data, and for sure they need to renew their system.
Works Cited
Refferences:
1. http://www.flatworldsolutions.com/articles/advantages-disadvantages-outsourcing.php
2. wikipedia.org/wiki/Outsourcing
3. http://money.howstuffworks.com/outsourcing1.htm
4. http://cdn.ttgtmedia.com/searchSecurity/downloads/Axelrod.pdf
5. wikipedia.org/wiki/Firewall_(computing)
6. Text Book Business Information System
7. http://www.qcomp.co.nz/index.php/9-blog/3-how-to-prevent-system-failure
8. http://wordprocessing.about.com/od/troubleshooting/a/dataloss.htm
9. http://www.garrettsystems.com/index.php?option=com_content&view=article&id=51:how-to-protect-against-computer-failure&catid=31:general&Itemid=46
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Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without much effort.
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When you think of outsourcing it is probably more accurate to think of it not as people's jobs that are going somewhere else but as a job, as in something that needs to be done, going to another business. For example if you have a company of forty people and you decide to get a new computer system for everyone. You may pay another company to do your IT and customer support for those computers. There for you didn't take away a job from someone you just didn't create one for the need. You paid another company to do it. They then can use one of there people who is familiar with the system already, or they take on the cost of training someone.
Although there has been considerable debate regarding IT outsourcing, especially among IT and networking managers, studies have shown that outsourcing has become a viable alternative to maintaining costly internal IT functions, and which can result in significant cost savings as well as performance improvements to organizational operations (Kaplan, 2002). This is considered one strategic advantage of IT outsourcing. Other strategic advantages, according to Antonucci, include (1) lower ...
Outsourcing is to obtain (as some goods or services needed by a business or organization) under contract with an outside supplier. (Merriam Webster) Some of the time an organization can not handle all aspects of a business process internally. The advantages of outsourcing is allowing companies to have lower operational and labor costs, faster production, and allowing companies to focus on core activities.
The competitive advantage that can be gained by companies through Information System or Information Technology outsourcing is efficiency and effectiveness in product or services. According to Vishal Patel, Executive Director of Copy Cat Ltd, efficiency and effectiveness are keys to every company to maintaining its competitive edge and that is where we come in; we provide IT solutions to our clients that will enable deliver a good quality product to their customers to do so within the shortest time possible. The company must have it because to main...
There is a wide-range of experiences an individual will take, due to Outsourcing. Outsourcing has an array of benefits and setbacks, though is often use
The competitive advantage that can be gained by the companies through IS/IT outsourcing is Improved business processes. IT outsourcing an identification method and rigor of IT resources that can help the business run smoothly. It can control the development of the project budget and expenditures. It also can promote information technology investment proposals from outside and provide skilled individuals in managing IT resources available in the company. Through these companies are able to provide appropriate information and report to the company. This can give competitive advantage to the company. For example, expenditures, progress, and issues the company can be viewed and controlled.
Competitive advantage is mean a firm’s ability to create value in a way that is rivals cannot. While outsourcing is a business strategy that moves some of an organization’s functions, activities, processes, and also decision responsibility from an organization to outside providers. This outsourcing is done by doing negotiating contract agreements with a vendor who takes the responsibility for the quality, customer services, production process, and people management of the function. So, to allow organizations to focus on their core business and create a competitive advantage, the organization must use outsourcing. Outsourcing is use to reduce operational costs. However, outsourcing have a lacking or disadvantages such as quality risk, quality service, language barriers, labor issues, and legal compliance and security.
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.