Outsourcing It Functions

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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...

... middle of paper ...

...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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