Outsourcing Information Technology - Case Study Example

OUTSOURCING Out sourcing Information technology is just not a trend but a cheap and alternative way to get a quality work done by an outsider or an entity. This is quite rampant at present in countries like US and other western countries not only because outsourcing saves large amount of the companies economy but also the time gap which exists between the countries like India, china, Philippines and other western countries forms a major advantage to the company which out sources the Information technology.

By out sourcing the Information technology, the company not only get the quality work done by experts but also will be relieved of the work pressure along with extra benefits like if there is any outage and any loss incurs that will be born totally by the outsourced company. Information technology has many different fields and departments.1. BPO (business process out sourcing)2. BTO (business transformation out sourcing)3. Software development out sourcing.4. Animation outsourcing.BPO has under its wing contact centres, which are a major source of revenue saving for the company and also a major source of revenue for the company that acquired the BPO contract.

The benefit of out sourcing the information technology is primarily to save a larger income of the company. This is particularly seen in the countries like United States and other western countries. If a company in US has to get the work done by one employee it has to spend at least not less than $5000 per month but when the same work is out sourced the company will get a more professional and quality work done by experts and also in time. They not only take's care of completing work in time but also supports after the completion of the project till the company requests for support.

Out sourcing Information technology is also not an easy job, it requires expertise to allot work to the out sourced company. The company should know how to extract the right work in time. A team of dedicated individuals should be devoting to that work and should always check weather the work assigned in done properly and in time. Even though out sourcing information technology allows to save company's economy and time there are lot of challenges to be dealt and resolved by the company. Any company who wish to out source their work should take all the prior approvals from the local government and also from the government where there are outsourcing their Information technology or any other field.

Approvals are not only looked up the amount of economy the country is loosing but also on the part of the technology breach and copy right infringement issues which arise out of the outsourcing. Especially countries like Unites states the technology used for out sourcing is very high and their counterparts have to comply to the standards as dictated by the company. The greatest challenge which a company faces to out source their Information Technology to a third party is from the employees of the company itself as the cutting of the employees is possible when work is out sourced.

The citizens of Unites states and other countries are also concerned about outsourcing since a greater part of the countries economy and income is crossing boundaries. Apart from the challenges mentioned above there are many other professional challenges that have to be met like, Human resource, technical infrastructure, office automation, managerial aspects, physical infrastructure and Memorandum of understanding between the company and the governments of both the countries.Any business will have both advantages and disadvantages that are a part and parcel.

But the most important aspect of an outsourced or any business is to critically evaluate and resolve the issues arising there off. Out sourcing information technology has to be taken care primary from the side of the issues which can be core technical issues, local cultural boundaries, human resource and other minor issues which can become very big if not taken care in time and resolved. IT and telecom are the major issues if not taken care and resolved in time can cause greater loss to the company and good will also be lost if service is not provided to the customers properly and with complete technical expertise.

If there is any outage regarding information systems and the hardware or network links then all the employees will be affected and the total work will be affected there by causing hindrance to the work. So it is very important to resolve issues as soon as possible and keep a record of all such resolution so that in future if any issues of the same sort is occurred immediate resolution can be obtained.To clearly understand the out sourcing process it will be easier if we take an example of any company which out sources the Information technology.

Bellsouth and Verizon are some the major telecom and Internet service providers who out source their technical support department to Asian countries like India, Philippines etc. Bellsouth alone has 2000 employees in India and more than 4000 thousand employees in Makhati city in Philippines.From the above detailed it clear that there are both advantages and disadvantages in information technology out sourcing but the on going debate between those that support the outsourcing trend and those that think it is detrimental to the U.S. economy can only be validated by the law and principles of economy of the country.

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