Reflection paper - Essay Example

ISM 6021: Management Information Systems Over the past 50 years organizations have come to realize the importance that IT can have for their business. At the same time, IT systems have become so commonplace that their value or uniqueness has diminished somewhat over time. IT was originally considered to be a proprietary technology that a single firm could use to harness its own potential. However, with the expansion of IT the system has now become an infrastructural technology. One mistake that many managers make is that they think that the advantages to be gained from infrastructural technologies will be ongoing.

The truth is that by the end of the buildout phase most of the opportunities to get ahead of competitors are all but gone. One of the benefits of IT is that is can be easily transferred. Not surprisingly the cost of IT has also decreased greatly over the years in conjunction with its increased usage. Outsourcing is an important issue in our economy because there are pros and cons to be argued for its relevance. I can see why so many firms turn to outsourcing, and that is to reduce costs. This is naturally the number one goal of any organization, making the option to outsource work all the more appealing.

On the downside, when outsourcing occurs overseas it can evoke strong reactions in home country customers. I think that outsourcing can be a high risk activity, and it is for this reason that it must be done very carefully. In a globalized world IT governance takes on increased importance, as it is often vital to the organizational success of a firm. Managers must understand IT governance because if done correctly it can reduce costs and risks but also help the company to gain a competitive business advantage.