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IT/IS Outsourcing

Powerful Essays
I. Reduce Cost
When using outsource it would reduce the costs associated with employees such as recruitment costs, payroll tax, insurance and other employee. With this, companies do not need to invest in employee training as it is the outsourcing expertise better quality at a lower cost. However, it also helps reduce cost of operational cost. With increasing operational efficiency of existing business processes supported by IT can reduce operating costs. For example, the company can reduce or remove IT maintenance they provided by passing to vendor to manage their system or new technologies they have.

II. Focus on core business
The competitive advantage through IS or IT outsourcing whereby company can focus on their core business. Meaning is they can focus on what they need only. All business always has limited resources of time, workforce and attention so it can make company slow in their production line of business. Therefore, by outsourcing, can manage time and workforce in more efficiently and more concentrate on core business process to successful. As example, the renewed strategy and restructure the resources (financial and human resources) available.

III. Better risk management
Every business or company has a risk that must be faced. Risks can occur as changes in the economy, technology, financial condition and others. Outsourcing providers assume and manage this risk for a lot of you, with the knowledge of a particular industry. They typically know what is right and what is not. Such as outsourcing company provide quality software specification for business needs.

IV. Swiftness and Expertise
As we know outsourcing vendor is expertise in specific their fields. It can reduce time and speed to IT market which with agility ...

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