TABLE OF CONTENT NO TITLE PAGE NO 1. Task 1 - Question 1 3 2. Question 2 4 3. Question 3 5 4. Task 2 - A 6 5. Task 2 - B 7 6. Reference 8 7. Appendix 9 TASK 1 QUESTION 1 Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer. In IT outsourcing, it used mainly for downsizing and cost reductions at major corporations, where should be used as a strategic tool to deliver a forceful impact on corporate growth and financial stability. By outsourcing non-essential work, the corporation can free valuable resources and focus on its areas of competitive advantage. To achieve that result, the corporation must know its core competencies, the type of work within the organization, and manage the outsourcing process. Outsourcing such as logistical activities the company can achieve great benefits, The advantage that a company could gain through outsourcing can be seen both from the operational and the strategic point of view. Too often companies look at outsourcing as a mean to lower only short-term direct costs in operational impact. However, through strategic outsourcing, companies can lower also their long-term capital investments and leverage their key competencies significantly from strategic impact. For example, outsource the network can management oversight of an IT/IS system but keep the end-user support in-house. This can provide an companies organization with a good balance of on-site support for employees. It can use outsourcing as a strategic initiative to improve customer service, quality and reduce costs. Outso... ... middle of paper ... ... Logistic May 1999, By Author: Sarah Tagliapietra, Peter Platan, Ng Seow Li, Ralph Schneider. - (http://www.peterplatan.com/other/files/outsourcing.pdf) 2. Smart Advantage and Disadvantage of outsourcing - (http://smartchurchmanagement.com/advantages-and-disadvantages-of-outsourcing/) 3. Risks, Benefits, and Challengesin Global IT Outsourcing: Perspectives and Practices By Author: Subhankar Dhar, San Jose State University, USA and Bindu Balakrishnan, San Jose State University, USA. - (http://www.isqa.unomaha.edu/dkhazanchi/teaching/ISQA4590-8596/Readings/Supplemental%20Readings/week%2012/Risks-Benfits%20and%20Challenges%20in%20Global%20Outsourcing.pdf). 4. About.com – Word Processing - (http://wordprocessing.about.com/od/troubleshooting/a/dataloss.htm) 5. Wikihow.com – How to Prevent Computer Failure - (http://www.wikihow.com/Prevent-Computer-Failure). APPENDIX
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Proceedings of the National Academy of Sciences of the United States of America (pp. 6747-6752). Ed. Dale Purves. Vol. 105. National Academy of Sciences.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
State University Press, 1989. http://www. Gioia, Dana, & Kennedy, X. J. Eds. of the book. (1999)
MLA International Bibliography. The book of the year. EBSCO. Web. The Web.
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.
...pital resources like distribution vehicles and storage warehouses should be outsourced to help reduce the high cost of operation which in turn can lead to reduction of its products price. The company should concentrate on product development and evolution and delegate distribution roles to outsourced firms. Such initiatives have worked well in the new Indian market and should be implemented in other areas.
No matter how big or small a business is, a business is able to outsource services that they could not do profitable on their own. Outsourcing is shifting all of the costs — accounting costs, including personnel, plus the risk of failure and the responsibility for action — to the third party. In return for assuming costs, the third party benefits by controlling the operation (Coughlan 167). This is the basic definition of outsourcing. Outsourcing has been around since the beginning of time.
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).
...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.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
Outsourcing is the final option for logistics management. When this happens, transportation firms concentrate on logistics, and the company can concentrate on it’s production. There are many cost savings using this type of program, however that lack of control can negatively effect many companies.
One main apprehension that they have against Information System is the high investment cost. In addition to this there is the high maintenance and upgrade costs associated with the deployment of new IT systems. In fact they prefer to outsource the heavy IT department expenditures to other companies having IT as their core activities. In return they expected to receive a full solution pack to meet their requirements and they are ready to pay these IT services as an operating cost. At the same time the risks associated with IS are being shifted to the other