Advantages And Disadvantages Of Computer Information Systems And Hardware Outsourcing

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INTRODUCTION This chapter reviews the concept of Computer Information Systems and Hardware outsourcing and its advantages and disadvantages to the company. It also focus on the different types or ways in outsourcing such as by cloud based, managed services and contracting which is being use by lots of companies worldwide including here in the Philippines as a business practice in saving cost in expenditures and improving productivity and efficiency of its employees. It also highlights the world’s largest and biggest hardware and software companies, IBM and Microsoft respectively, as outsourcing partner for the biggest companies around the world including those who are here in the Philippines.

The concept of Computer
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Because of the rising cost of information systems functions in some firms, managers are finding ways on how to control these costs and are considering Information Technology as a capital expenditures/investments rather than as an operating cost of the firm. Controlling these costs by outsourcing are one of the options because some firms considered this option as cost effective than to maintain their own computer centre and information systems staff. Another concept of outsourcing IT systems is, to pay only for what it uses meaning the company will pay only the outsourcing partner according to the extent of computer processing that they needed rather than to build their own computer centre and not utilized or it is underutilized when there is no peak load. Some firms also outsourced because their information systems personnel can’t cope up with the rapid change of technology. But not all firms may have benefited from outsourcing, there are also disadvantages of outsourcing that a firm must carefully consider which may or can create serious problems for the company if they are not well understood, managed and taken for granted. Below are some of the most popular advantages and disadvantages of Computer Information Systems and Hardware
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