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Outsourcing pros and cons in america
Outsourcing pros and cons in america
Advantages and disadvantages of global outsourcing
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Outsourcing IT Functions Paper
Outsourcing can be defined as the outsourcing of a company’s non-core processes to a third party that would be considered an expert in that field ("A key strategic question: to outsource or not?," 2007). There are many factors that need to be weighed before a company can decide to pursue the outsourcing path, which could lead management in many different directions. No matter the benefits or risks involved, the final decision before the management of a company looking to outsource is whether or not outsourcing will provide a strategic advantage over the competition.
Factors for Outsourcing
One of the main reasons companies look to outsource is to save money on functions that are not deemed core activities ("A key strategic question: to outsource or not?," 2007). By turning over parts of their operations, that they feel can be better handled by an outside vendor; the company reduces costs incurred by having fulltime employees that are knowledgeable in the IT field. Another benefit or outsourcing is the access to a vendor that employs subject matter experts in the desired field ("A key strategic question: to outsource or not?," 2007). Outsourcing also provides the company with flexibility towards the level of support they need and the kind of services they require to properly support their operations ("A key strategic question: to outsource or not?," 2007). By balancing these factors management can get the technical expertise at the level and cost they want and not have to deal with the day to day functions of managing it.
Factors against Outsourcing
One of the major concerns with outsourcing is the standard of quality that will be provided by the selected vendor ("A key strategic question: to out...
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...als of the organization are considered and the choices made keep in alignment with them, outsourcing should provide a competitive advantage.
References
A key strategic question: to outsource or not? (2007, June 9). The Bangkok Post, 1. Retrieved August 9, 2008, from ProQuest Newsstand database.
Fjermestad, Jerry, Saitta, Jo Ann. (2005). A Strategic Management Framework for IT Outsourcing: A Review of the Literature and the Development of a Success Factors Model. Journal of Information Technology Case and Application Research, 7(3), 42-60. Retrieved August 9, 2008, from ABI/INFORM Global database.
Steve Shipside (2000, May 11). Dont do it yourself A great many dot.coms are coming to the conclusion that there are benefits to handing over the hardware headaches to someone else. The Observer,p. 10. Retrieved August 9, 2008, from ProQuest Newsstand database.
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Introduction : Nowadays, many organisation are outsourcing their non- core activities to an external agents. Distribution is one of these activities as distribution consider as a non-core activity for many firms. Although, there are many advantage for outsourcing, there are also risks and disadvantage in this process. In this essay I would explain the term outsourcing and explain why organisations are preferring to outsource some of its functions in today’s environment. Also, in this essay it has
The Outsourcing Dilemma CIS Strategic Planning Introduction To outsource or not to outsource, that is the question. It is indeed a question that a CIO, CEO, or IT manager is likely to encounter. It is not a simple question, nor is the answer simple, and there is not a one size fits all solution. As with any decision, it is good to face it with facts and without prejudice. This work shall discuss factors that help determine the answer, risks, benefits, cost analysis, and implications to the business
Strategic Outsourcing The purpose of this paper is to explore the strategic advantages and disadvantages of outsourcing information technology (IT) functions. More importantly, it is to discuss the viability of outsourcing specific strategic functions, such as software development, hardware maintenance and network management, which have been among the most common non-core functions outsourced organizations. In exploring the strategic advantages and disadvantages of IT outsourcing, several sources
Outsourcing has been utilized by companies in sundry industries for many decades as a key business strategy (Ghodeswar and Vaidyanathan, 2008). Harmancioglu (2009) argue that several successful companies depend on outsourcing to continue being responsive in coping with market changes as well as to expand their operations globally. He also stated that outsourcing was primarily perceived and employed to reduce costs, however recently it has become a prevalent and essential tool to gain competitive
sourcing model to deliver the IT activities in alignment with the business goals. IT sourcing can be categorized into IT outsourcing and IT insourcing. IT outsourcing in which the organizations outsource IT activities to a service provider has been in high demand. At the same time companies keep important functions in-house or insource them. Below framework provides
EXECUTIVE SUMMARY: The outsourcing strategy is adopted to achieve improvement in performance. This report examines different elements. Firstly, contribution of human resources (HR) outsourcing strategy that helps the company to manage talent and save expense regarding to workforce agility and performance control. Secondly, an effectively accomplished outsourcing strategy is different from the focuses that are limited of outsourcing strategies. It distinguishes enterprise objectives and motivates
The significant level of outsourcing programs used across all business sectors is well documented in the literature (Bender 1999; Quinn 2000; Dun and Bradstreet 2000; Klaas, McClendon and Gainey 2001). Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global
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HR outsourcing is not to be taken lightly, as while it can have beneficial consequences, it can also have harmful and irreversible ones as well. The outsourced areas are important, they provide the basis of the conditions of work, day-to-day management, and business climate. As such they require expertise and experience. According to Patrick Bouvard in his book 'HR outsourcing ', unloading technical tasks or high risk operations allows a company to reposition the resources of HRD on creative topics
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1. Pros and Cons of Contracting out a) Pros The proponents of contracting out assume that outsourcing in the IT sector is useful in strategic, technological, and economic reasons. (Gonzalez, Gasco & Llopis, 2009) They believe that outsourcing enables an organization to get the same or better services with lower cost. First, strategic advantages enable organizations to refocus on strategic and core functions, and provide flexibility for organizations because organizations need not to concern about