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Pros and Cons of Company IT Outsourcing

Good Essays
1. Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.

Competitive advantage is an advantages the advantage that a firm has over it is competitors which is allowed it to generate the grater sale or margin then retain more customers than it competition. In the competitive advantages there many types of competitive advantages include the firms cost structure, product offerings, distribution network and customer support. For the IT/IS, it is the distribution network and customer support.

The advantage you can get is skilled expertise. Company may want to outsource a task when it requires skilled expertise. This skill set may not be a core competency of its business. To focus their core mission in providing a high quality product and service to the customer what makes sense is offshoring the task to people can perform better. The company not only spend less on employee trainings and save precious man-hours but cut costs as well. The competitive advantage by outsourcing is a good opportunity to other company to serve in their companies by providing service in any business system.

Outsourcing will allow the company to share any associated risks with their outsourcing partners there by reducing your burden. The company shared company information, data or important file. By outsourcing the company can reduce the risk involved in having the same task done in-house by the staff that maybe not be as competent in that field. After the company allocate tasks to the outsourcing partner, it will help Increase in-house efficiency they share the workload of their employees. This allows company to develop their internal task force and use ...

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...lso will change, and the need to meet the desire of the outsourcing company. If there is a misunderstanding of the contract, the contract renewal should also be done if no consent from both sides or one side. In fact, poor quality and delayed services amongst others can also lead to the renewal of the contract for the satisfaction of both sides.

Project not deliverable is one of the threats in outsourcing. Your outsourcing provider might not be providing all services only for your company. They might be catering to the needs of several companies, and they will not be able to give your company full attention. You will have trouble getting satisfaction results provided by the outsourcing company. This may also make your projects delayed and pose a threat to your company.

3. Discuss measures companies need to take in order to prevent computer system failure.
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