1. Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Globalization is forcing are many companies to further enhance their competitiveness in the fast moving the technology world. Software development outsourcing has been proven as a great success for many companies throughout the world. Outsourcing will reduce internal costs while allowing the company to focus on its core competencies.
Reduce cost is one of the most powerful advantage using resources from outside is that it can reduce the cost of expenditure. This is because when using an external source, only need to pay an agreed a sum of money and concerned parties will manage all the requirements set. The main function uses outsourcings is to reduce capital expenditures, cost, time, and used the extra effort and get a different experience. By taking outsourcings just have to wait for project completion on time as planned and all the problems will be incurred so just pay wages only. Should take its own employees, companies need to produce high expense, besides paying employee salaries, bonus, and extra charges etc. and keep maintenances.
Better Risk Management All risks that apply to a project that makes it easy to find the solution and share any of risks with outsourcing. They know and are familiar because by choosing out sousing a project management system which high quality and a process of trial-and-true methods to develop a project to reduce the burden.
For increasing efficiency were can focus on what it does best and gain a competitive advantage in the market and thus Eventually generating more a profit for company. Reducing turnaround time for were company no nee...
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...gh attrition, layoffs are inevitable. This is difficult at best and if not managed appropriately, can have a negative impact on remaining employees.
3. Discuss measures companies need to take in order to prevent computer systems failure.
• Practice good working habits
• Use an anti-virus software and keep it updated
• Protect against power surges with an UPS
• Keep your machine dry in a dry, shaded, dust-free and well-ventilated area
• Do not over-tweak your system
• Avoid moving your computer or notebook when it is in operation
• Safeguard your computer
• Practice disk maintenance
• Pre-empt failure
• Do not listen to tell-tale technique
• Beckup n recovery
• antispyware
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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 (...
Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without much effort.
Top 7 Outsourcing Advantages Outsourcing Advantages: A Back-Office Operations Illustration By James Bucki ; http://operationstech.about.com/od/officestaffingandmanagem/a/OutSrcAdvantg.htm
Outsourcing is to obtain (as some goods or services needed by a business or organization) under contract with an outside supplier. (Merriam Webster) Some of the time an organization can not handle all aspects of a business process internally. The advantages of outsourcing is allowing companies to have lower operational and labor costs, faster production, and allowing companies to focus on core activities.
The competitive advantage that can be gained by companies through Information System or Information Technology outsourcing is efficiency and effectiveness in product or services. According to Vishal Patel, Executive Director of Copy Cat Ltd, efficiency and effectiveness are keys to every company to maintaining its competitive edge and that is where we come in; we provide IT solutions to our clients that will enable deliver a good quality product to their customers to do so within the shortest time possible. The company must have it because to main...
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.
Competitive advantage is mean a firm’s ability to create value in a way that is rivals cannot. While outsourcing is a business strategy that moves some of an organization’s functions, activities, processes, and also decision responsibility from an organization to outside providers. This outsourcing is done by doing negotiating contract agreements with a vendor who takes the responsibility for the quality, customer services, production process, and people management of the function. So, to allow organizations to focus on their core business and create a competitive advantage, the organization must use outsourcing. Outsourcing is use to reduce operational costs. However, outsourcing have a lacking or disadvantages such as quality risk, quality service, language barriers, labor issues, and legal compliance and security.
If a company choses to outsource one advantage is flexibility. The company has flexibility to move to cheaper suppliers. If they thing their current supplier isn’t good enough or too expensive, they always have the option of finding a better external supplier. This is one way to take advantage of lower costs. Another
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
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).
Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
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
...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.
For both of these solutions, outsourcing and offshoring, if managed right they can be an effective solution that offer value to the company and its customers, when not handled correctly it can be costly in multiple