Advantages And Disadvantages Of Outsourcing And The Information Technology Strategy

In the world of business, information technology strategy has been overlooked by owners for they are so focused on marketing strategies. Keeping up with the use of information technology is in just about all types of industrial process and just as important. It has been a proven fact that it contributes to the development of strategies and tactics when developing a product or service. During the twentieth century the accelerated progress in information technology has developed a large variety of technologies for the collecting and storage of information such as the Internet, software companies, and personal computers.

"The research on IT and business performance has found that (a) the more successfully a firm can align information technology with is business goals, the more profitable it will be." (111)

Any business or company that uses Information Technology (IT) for its operation and is leveraging it for gaining competitive advantage also needs to think about other aspects of the technology. Technical advancement and innovations alone are not sufficient to make any business attractive. IT definitely plays a huge role in the highly competitive business world now than before because of the advancement in the area and various ways it can influence the rise or fall of the business.

How information technology can be effectively integrated with company’s "production, marketing, human resource, research design and finance" to take the advantage of core competence, as well as leveraging the quality and speed to help company business continuity.

Outsourcing overseas is a major disadvantage to the American economy. Contrary to popular belief, companies argue that low- cost labor will in turn save them money and raise competitiveness, which will result in less costly products. When taken into consideration outsourcing eliminates domestic jobs. When a firm outsources, the jobs outsourced are, by definition, removed from the country. These jobs are then sent overseas, where labor is paid far less than in the United States:

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

Many organizations are working with large amounts of data and important information that can be detrimental to the survival of their business, and organizations typically rely on information systems to manage and carry out their operations. Information systems can be described as an integrated set of components used for storing, collecting and processing data for providing information, digital products and knowledge (IMGI, 2006). For this paper, the strategic analysis decisions along with what we may need to watch out for pertaining URL for the IT field is discussed, along with the impact that these decisions will have on the company. Furthermore, the potential changes in IT related to innovation and organizational process is also reviewed,

offshore outsourcing is when you give jobs to other countries because wages are lower.foe example Nike and Jordan both use offshore outsourcing to make their products. one pro would be that it frees up time for more important task to be done.second it allows growth and development in other areas for the chance at making more money for the company. third due to the low wages in other countries it allows products to be more affordable.

economy. Outsourcing leads to the fragmentation and disintegration of the supply chain, inviting new competitors into the industry, and undermining pricing power and profitability. For instance, is feasible only if it can be separated from other supply chain activities: product development, branding, marketing, distribution, and after sales services. Consequently, the more and more activities outsourced, the supply chain turns from a single integrated process performed within the boundaries of traditional corporations to a fragmented process, performed across several independent subcontractors. Another disadvantage, outsourcing’s unintended consequences extent to company relations with another partner—valued customers. Customers may feel betrayed in each and every activity is outsourced. If I hire Home Depot to make certain improvements in my house because they have reputation to reliable services, I would feel betrayed if I get services from a strangers hired by Home Depot. And I will feel even more betrayed if I end up discussing my medical or financial records with overseas strangers. What seems to be trendy and virtually in business strategy is not always a good

Debates between business professionals regarding risk and benefits of outsourcing is becoming increasingly heated with particular focus on risks as unanticipated costs, potential for setbacks, integration difficulties, quality or benefits as minimize overall cost, focus on other business area, meet customer demand and flexibility. However, being prepared, done the research properly, hire the right company can bring plenty of benefits to an organization looking to outsource different aspects of their business. Rudzki, Smock, Katzorke, and Stewart (2005, pg.8) cover the significant importance of outsourcing as part of supply chain management and acknowledge the enormous role on raising customer satisfaction, driving higher profit margins, and fueling growth otherwise known as increasing company profitability. To understand how the risks and benefits of outsourcing could affect the company profitability, extended supply chain and how cost becomes value needs to be study. This paper will examine Boeing 787 Dreamliner product development and unconventional supply chain supply where best suppliers were considered partners and shared the risks of this product development.

clear. It simply shoes some arguments of a proponent and a opponent. We still need hard evidence

product or service in the form of lower prices, quality and better service has become an

In a contemporary business environment, Information Technology (IT) has become a strategic weapon organizations use in enhancing competitive advantages. With benefits that organizations derive IT projects, organizations are continuing embarking on the IT projects to enhance competitive market advantages. Typically, expenditures on

Knowledge process outsourcing is one step ahead of business process outsourcing. KPO is basically a knowledge-related and information-related work carried out by Best KPO companies in Kenya to save cost. It mainly involves transfer of business processes necessitating specialized domain-specific knowledge and business expertise of a higher level to other geographic locations. With globalization flattening the world, it has become increasingly significant for organizations to utilize Best KPO companies in Kenya to stay competitive. This gives them the advantage of improving efficiencies, minimizing their costs and shifting the focus onto the key growth areas of their business. Outsourcing KPO services in Kenya offers companies with greater benefits, as they can get access to domain-based processes and advanced research & analytical skills, rather than just process expertise. This typically involves high-value work carried out by expert staff.

The concept of outsourcing originate from the American terminology “outside resourcing”, meaning to get resources from the outside.1