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Advantages and Disadvantages of Information Systems Outsourcing: Risks and Benefits - Research Paper Example

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This paper presents a detailed analysis of the idea of “outsourcing”. This paper will discuss the outsourcing working paradigm and its use for the information systems. This research provides discussion on impacts of the outsourcing the information systems on organization’s performance…
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Advantages and Disadvantages of Information Systems Outsourcing: Risks and Benefits
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Extract of sample "Advantages and Disadvantages of Information Systems Outsourcing: Risks and Benefits"

Download file to see previous pages According to, if an organization does not make use of its internal resources to deal with or manage information systems, it can hire an outside company that specializes in offering these facilities or services to perform the tasks. “The process of turning over a corporation’s information systems, telecommunications networks, or application development to outside companies is acknowledged as outsourcing”. A widespread process for decreasing the software development time is to subcontract an action. The subcontractor may have access to modern and up-to-date technology or knowledge that will augment speed of the accomplishment of the action. For instance, signing a contract for a backhoe can complete in two hours what it can take a group of labours two days to do. In the same way, by appointing a consulting firm that is expert in ADSI programming, an organization may be capable to cut in half the time it would take for fewer knowledgeable, in-house programmers to carry out the task. Subcontracting also frees up resources that can be assigned to a most important action and will preferably effect in less project duration. Various corporations sign up an agreement with an external consulting company that specializes in information systems development to conquest few or the entire of its development processes. For instance, American Express took services of IBM for approximately 4 billion dollars over 7 years to run its web-based system, data storage, network servers, and help-desk related activities. In addition, the contract also moved more than 2,000 American express staff members to IBM’s Global Services division. ...Download file to see next pagesRead More
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