IT Infrastructure Outsourcing At Schaffer

INTRODUCTION TO OUTSOURCING:

Definition:

The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual. In common words, outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. It can also be defined as the farming of services to third party (Smith & McKeen, 2012).

Outsourcing is a trend that is becoming more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business. In some cases, the entire information management of a company is outsourced, including planning and business analysis as well as the installation, management, and servicing of the network and workstations. More and more companies, large and small, are turning to outsourcing as a way to grow while restraining payroll and overhead costs ( Ribbers & Routledge ,2011).

Outsourcing some job functions reduces burden on the company. Sometimes company may not have the equipment or enough technical expertise, at that time outsourcing job to a vendor may give better quality output. Moreover by outsourcing the need to hire individuals in house eludes, which minimizes the recruitment cost for the company. If the company has branches in other countries, it may be difficult to manage the clients over there. In that case, it can offshore some of its job functions. To decrease the cost many companies offshore their call centers to the places where the wage rate for employee is less ( Ilan, Kotlarsky and Willcocks, 2009).

IT Infrastructure at Schaeffer

Schaeffer ...

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...f its job functions then it should consider all divisions equally and then decide what are the possible jobs that can be outsourced, so that all the divisions have equal advantage.

Works Cited

Aalders. R (2001): The Outsourcing Guide,John Wiley & Sons, Chichester, UK.

Altinkemer. k, Chaturvedi. A, and Gulati. R (1994): Information systems outsourcing: Issues and evidence, International Journal of Information Management, 14, 252-268. James D. McKeen and Heather Smith (2012): IT Strategy-Issues and Practices, Second Edition.

Jeffrey A. Hoffer, E. Wainright Martin, carol V. Brown and Daniel w. DeHayes (2009): Managing Information Technology, Seventh Edition.

Ilan Oshri, Julia Kotlarsky and Leslie Willcocks (2009): The Handbook of Global Outsourcing and Offshoring, Palgrave McMillan.

Pieter Ribbers, Jan Roos Routledge (2011): Managing IT outsourcing,