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Outsourcing - Essay Example

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Outsourcing in IT Functions Outsourcing has been the term used when businesses decide to send their IT needs to a consulting firm that is outside their company. In the article by Grover, Myun-Joong, and Teng (1996) the authors build a case for outsource and show why it is important for Information Technology…
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Download file to see previous pages The authors point out that there are five trends that are showing that outsourcing is happening for IT on a more regular basis. These trends include: 1. Large companies are outsourcing 2. A larger range of services are being outsourced and they are often more in-depth services. 3. There is more functional outsourcing 4. Service providers are accepting more risk and more responsibility to manage projects. 5. The relationships with service providers are changing. (p. 3) The article also stated that outsourcing success will depend on the degree that the company outsources two functions: systems operations and telecommunications. Also, success will depend on whether the vendor is trustworthy, cooperative and communicates well with the company that has hired them. My opinion of outsourcing is that it is an important thing to do in a company, especially when there is something that would be expensive to do in house. In the IT field, it seems that many people have a challenge with understanding how to make telecommunications and systems operations work. There are many consulting firms that can help in these situations and help the business move forward. This makes sense that a consultant who specialized in a certain subject would find it easier to do the job. ...Download file to see next pagesRead More
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