IS/IT Outsourcing Essay

IS/IT Outsourcing Essay

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Competitive advantages are gained by a company by providing real or perceived value to customers. To determine how IT can provide a competitive advantage, the firm must know its products and services, its customers and competitors, its industry and related industries, and environmental forces, not to mention the insight about how IT can enhance value for each of these areas. To understand the relationship of IT in providing a competitive advantage, consider the potential of a firm’s IT resources to add value to a company or profits. Three characteristics of resources give firms the potential to create a competitive advantage, which are value, rarity and appropriability. This three characteristics, used to characterize resources that can create and initial competitive advantage. In order for the competitive advantages to be sustained, however, the resources must be imitable, imperfectly mobile, and have low substitutability. Imitability is the feature that determines whether a competitor can imitate or copy the resource. Mobility or ability to trade refers to the degree to which a firm may easily acquire the resource necessary to imitate a rival’s competitive advantage. Some resource, such as hardware and software, are easy to acquire, thus highly mobile and unlikely to generate sustained competitive advantage. Even resources are rare, when it’s possible to purchase or hire the resource, then the resource is mobile and incapable of contributing to a sustained advantage. Finally, substitutability refers to the ability of competing firms to utilize an alternative resource.
Information System or Information Technology outsourcing triggered when systems developed or IT works is done by a third party. It is a strategic decision that is...


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...ommunity.com/business-innovation/can-outsourcing-support-cheaper-0690729#!qbVLr retrieve at December 19th 2013

Rahul Jain. (December 9th 2013). African Digital Forum and Award inducts Wales Ajisebutu of 21st Century into ADA Hall of Fame. Available at http://www.theoutsourceblog.com/2013/12/african-digital-forum-and-award-inducts-wale-ajisebutu-of-21st-century-into-ada-hall-of-fame/ retrieve at December 19th 2013

Rahul Jain. (December 9th 2013). African Digital Forum and Award inducts Wales Ajisebutu of 21st Century into ADA Hall of Fame. Available at http://www.theoutsourceblog.com/category/news/ retrieve at December 19th 2013

Quality Web Solutions. (May 21st 2012). Invest in Offshore Staffing to Increase Work Efficiency. Available at http://www.quality-web-solutions.com/blog/invest-in-offshore-staffing-to-increase-work-efficiency/ retrieve at December 19th 2013

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