Advantages of Outsourcing Technology - Essay Example

Comments (0) Cite this document
Summary
The author of the paper states that outsourcing IT can provide major cost and time saving advantages over a range of projects from small things such as repair of hardware or network maintenance to ongoing management of all IT issues for multiple sites and users. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Advantages of Outsourcing Technology
Read TextPreview

Extract of sample "Advantages of Outsourcing Technology"

Download file to see previous pages Due to rapid changes in IT, it is challenging for both large and small businesses to remain technologically current. Outsourcing IT can help with this process, as illustrated by the proliferation of application service providers (aSPs) in the past five years. Clearly, the growth of the Internet has created forces that are driving companies to outsource (Jones, 2000), including highly competitive global markets and the rise of e-business. These trends compel companies to reorganize and utilize more outsourcing to gain higher e-business capacity, make predictable cost forecasts and cost reductions, attain well-defined and consistent service levels, acquire needed skills and expertise, gain access to best practices, and focus on core competencies.
The Goal: optimal outsourcing Traditional outsourcing focuses on achieving higher performance, greater flexibility, and reduced costs. Outsourcing IT offers the possibility of imposing control on the process, allows the conversion of fixed costs into variable costs, creates the opportunity for increased profitability, and fosters innovative capabilities and expanded flexibility (Quinn, 2000). IT has been identified as one of the most costly components of a business (Barthelemy, 2001), so options for reducing costs are certainly worth considering.
For a number of reasons, outsourcing IT cannot be approached like traditional make-or-buy decisions. To begin with, IT is not homogeneous because it is integrated with a wide variety of systems and activities. additionally, adjustments to standardized applications that accommodate the needs of a business unit or function are was often prohibitively expensive. Furthermore, estimating IT needs more than three years in advance is difficult, due to the rapid innovation. Consequently, a contract extending beyond three years may hinder the adoption of new technologies. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Advntges of Outsourcing Technology Essay Example | Topics and Well Written Essays - 3193 words, n.d.)
Advntges of Outsourcing Technology Essay Example | Topics and Well Written Essays - 3193 words. Retrieved from https://studentshare.org/information-technology/1702874-outsourcing-technology
(Advntges of Outsourcing Technology Essay Example | Topics and Well Written Essays - 3193 Words)
Advntges of Outsourcing Technology Essay Example | Topics and Well Written Essays - 3193 Words. https://studentshare.org/information-technology/1702874-outsourcing-technology.
“Advntges of Outsourcing Technology Essay Example | Topics and Well Written Essays - 3193 Words”, n.d. https://studentshare.org/information-technology/1702874-outsourcing-technology.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Advantages of Outsourcing Technology

Advantages and disadvantages of outsourcing

...?Advantages and Disadvantages of Outsourcing Table of Contents Introduction 3 2.Growing Importance of Outsourcing 4 3.Influence of Outsourcing 6 4.Benefits of Outsourcing 9 5.Risk and Disadvantages of Outsourcing 11 6.Conclusion 13 Reference 14 1. Introduction Outsourcing has become a major business in today’s world. Most of the big companies outsource their work which is not their core operation. To understand outsourcing one has to know what does outsourcing means. Outsourcing can be defined as contracting out a work which is not the core function of...
9 Pages(2250 words)Essay

Outsourcing: reasons, advantages and disadvantages

...to take action. This was achieved by privatising the power plants in the Latrobe valley to multinational corporations. The advent of competitive business vendors meant that labour force trimming begun immediately. In an effort to optimise their business operations, the new companies went for outsourcing of tasks. This resulted in the removal of thousands of people from their jobs in the Latrobe region. The already high employment levels were replaced by high unemployment levels. The net effect was migration which further caused imbalances in the demographic composition of the region. (Fletcher, 2002) Strategic Thinking and the Growth of Outsourcing Outsourcing has certain...
6 Pages(1500 words)Essay

Information Technology Outsourcing

...International Economics – Outsourcing Why Outsourcing Occurred Outsourcing is a process through which a company obtains services or inputs from a corporation outside of the organization. This form of outsourcing has been practiced for many years by organizations in the United States, and happens when a company has another business execute some tasks for it because the other company can perform it for a lower price or some other reason. Some off the tasks commonly outsourced include legal practices, part manufacturing, and accounting practices. Normally, the other company has a comparative advantage in that job which makes...
6 Pages(1500 words)Research Paper

Outsourcing Information Technology

...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...
2 Pages(500 words)Case Study

Outsourcing Information Technology Department

...up with Western practices." Wheatley continues to say that American companies are so set on saving money that they do not realize other countries do not have the same mindset and safe guards as we do". While reviewing the aspects of outsourcing portions of the information technology (IT) department, task force managers measured the cost risk benefits of keeping its better run IT operations in-house. The IT department was divided into five sections, application development and maintenance, operations, database and systems administration, voice and data networking infrastructure, and technical training. A study was performed against each of these organizations regarding how they measured against industry...
10 Pages(2500 words)Term Paper

Outsourcing technology

...Outsourcing - Technology Outsourcing IT cn provide mjor cost nd time sving dvntges over rnge of projects from smll things such s repir of hrdwre or network mintennce to ongoing mngement of ll IT issues for multiple sites nd users. This re is in fst-growing mode due to the complexity nd necessity of informtion technology. IT outsourcing is not only utilized by the lrge corportions worth billions of dollrs but lso by medium-sized business to mnge their internl networks. Due to rpid chnges in IT, it is chllenging for both lrge nd smll businesses to remin technologiclly current. Outsourcing IT cn help with this process, s illustrted by the prolifertion of ppliction service providers (SPs) in the pst five yers. Clerly, the growth... fosters...
8 Pages(2000 words)Essay

Outsourcing Information Technology Department

...Outsourcing Information Technology Department Outsourcing Information Technology Department The pharmaceutical industry has experienced some fundamental changes during the 1990s with widespread consolidation through takeovers, mergers, as well as strategic friendly acquisitions. This trend is set to carry on and it has been foreseen by some stock-market viewers that by the year 2010 approximately 50% of the world pharmaceutical market will be taken by merely 5 or 6 “big” companies, each with a market share around 10%. A recent report which reviewed three hundred company technology-decision makers pointed out that just twenty eight percent of associations...
2 Pages(500 words)Essay

Advantages and Disadvantages of Outsourcing

...technology department, containing too many projects. But the problem is that a company is undergoing the crisis of lack of labor. Even the budget shoots up more than the organization’s contribution. Again outsourcing option will be beneficial by managing and controlling the poor operations of a company. Usually it’s a fact that during the tax season and auditing periods an accounting department gets shorthanded of the working staff. Outsourcing option again brings an advantage to a business, in managing the function of staff flexibility. Sometimes in a company the HR manager takes medical leave, where suddenly the other two administrative assistants’ leaves too for some...
7 Pages(1750 words)Assignment

Outsourcing Training and Development: Advantages and Risks

...in mind. The training should be two-days’ program involving interpersonal relations, supervision, effective mentoring of their subordinates, and empowering the subordinates. Motives for outsourcing training - advantages/disadvantages Outsourcing should be based on a well thought strategic plan. Organizations spend millions annually on training but the returns are not visible. According to Judith Hale outsourcing helps organizations to better manage their budgets, leverage technology-based training and demonstrate contribution to the organization’s goals (Thompson, 2006). Before outsourcing the organization needs to identify the...
16 Pages(4000 words)Essay

Advantages of Outsourcing against Insourcing

...Outsourcing (buying) and Insourcing (making) Table of Contents 1. Introduction : Page 3 2. Advantages of outsourcing against insourcing : Page 4 a. Focus on core activities : Page 4 b. Cost and efficiency savings : Page 4 c. Reduced overhead : Page 5 d. Operational control : Page 5 e. Staffing flexibility : Page 5 f. Continuity & Risk Management : Page 6 g. Increased competitive power : Page 6 h. Exploitation of better technology : Page 7 i. Tax benefits : Page 7 3. Problems of outsourcing : Page 7 a. Lack of managerial control : Page 8 b. Hidden costs : Page 8 c. Threat to security and confidentiality : Page 10 d. Quality problems : Page 10 e. Loss of flexibility... ...
10 Pages(2500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Advantages of Outsourcing Technology for FREE!

Contact Us