Advantages and disadvantages of outsourcing in IT Project Management - Research Paper Example

Download file to see previous pages This research will begin with the statement that in most of the businesses today, the sole aim is to operate at optimum levels, where they reduce as many costs as possible and increase revenues to their best. In cost reduction, it is about reducing expenditure, especially expenditure, and ensuring that they use the cheapest products and services as possible. For instance, a company might be in need of a certain service for just but a short period of time. It could also be in need of such a service seasonally and not throughout. It would then be quite expensive and unnecessary to hire a full-time professional to handle that task for a short period then stay idle for a larger amount of time. In such cases, the company could consider hiring that professional on a contractual kind of a relationship. This is the primary concept lying behind outsourcing. Outsourcing is essentially the act of assigning certain business processes or activities to an external party that can help in handling them. Most of the time, large organizations cannot handle all their processes internally, either because they are too complex, bulky, or seasonal. The more common reason is the temporary nature of some tasks, such that the company is not willing to hire professionals permanently to carry out these activities from within. When the company then outsources the work to the external service provider, they accord them the responsibility of handling that activity all by themselves and maintaining the firm’s interests and assets at the same time. ...Download file to see next pagesRead More