In a world of increasing automation, companies and organizations with massive amounts of data to manage often find themselves outsourcing their databases. This particular arrangement depends on many factors, such as trustworthiness and reputation. Each business requires different coverage from the outsource provider as well as different costs requirements. Many providers offer cloud based services, in house managed services, near and offshore and outcome-based consulting. Many companies do not have the means or the technical know-how to store, maintain, manage, and safeguard their information. This leads to many companies choosing to outsource their databases as a solution, which is often a financially sound decision. “The external service …show more content…
Many businesses consider that outsourcing creates too much forfeiture of control, less flexibility, uncertain savings and the risk of being held captive to one provider. Some businesses find themselves and their employees a target for malware and many attacks focused on stealing information. One factor that ultimately leads to the decision to outsource is the fact that a business might be better off keeping their valuable information in a safer environment.
Modern database solution providers can offer the latest technology at competitive prices. They are also held to and governed by a higher standard than most businesses they offer services to. Industry standardization and privacy laws can ensure a provider is trustworthy, along with accreditation from respected industry standardization organizations. The most appealing draw to outsourcing is that the information is kept safe and it will be available, even if a natural disaster or theft occurs. This can be enough assurance for companies, especially if they have a solid contract in writing with the provider to uphold these standards.
The storage integrity and query integrity of a database are two of the most important functions that providers can offer, in addition to complex encryption and firewalls to provide additional security in the virtual environment. Each provider can offer a streamlined plan to implement a database solution along
After analyzing all these risks and criteria Id like to present some points to demonstrate why we should go for outsourcing:
Because many businesses in the US have more often began outsourcing different business products instead of doing them in-house, it is important to understand why outsourcing may be the best option. Although many tie outsourcing to foreign markets, outsourcing can include both foreign and domestic markets. By entering into a contractual agreement, outsourcing allows organizations to pay for services they need. This gives the option for a business to get professionals to perform services for them that the business may not have the staff for. Outsourcing provides a cost saving-strategy that is usually more affordable. Ultimately,
The case identifies struggle and problem faced by organizations outsourcing IT projects and allows us to ponder on how to manage outsourcing well.
Since Smith’s Information Services Company is in the business of processing and analyzing consumer data, the minimum number of vendors to solicit for outsourcing the data center would be three, with a maximum of ten. This would provide not only a fair solicitation process, but also would ensure the company receives the best value for the services provided by the selected vendor. While the goal of the outsourcing is to reduce the company’s soaring overhead costs, simply selecting any cloud computing company based on cost alone would be foolish. Ensuring there are multiple vendors solicited for this service would ensure the company’s costs are reduced while still maximizing profits. Given that personnel costs account for the majority of a company’s overhead costs, followed closely by utilities costs, any vendor solicited should cost less than Smith’s Information Services is currently spending on its employees and utilities. Limiting the number of vendors solicited to ten or less would also ensure a quick evaluation period without the chance of getting mired in minute details between the
While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
Outsourcing is that a product or service provided by outside vendors which but was previously provided internally or that could be provided internally(Pearlson, 2001).It is an effective approach for information system implement in a business organization but a risky one.
The greatest area of opportunity that has been identified is the data center and the continual increased costs of maintaining and manning it. Secondary areas of opportunity have been stagnant sales, which have resulted in a reduction of company profits. It is for this reason that Smith’s Information Services is focusing on the potential outsourcing of the data
Outsourcing is when a company purchases products or services from an outside supplier rather than performing the same work within its own facilities, in order to cut costs. In other words, outsourcing is an organization's contractual relationship with a specialized outside service provider for work traditionally done internally by that organization. The decision to outsource is a major strategic one for most companies because it involves weighing the potential cost saving against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, as well as payroll and other
Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the
While it lessens the burden on organizations, reducing and shifting the cost and risk of its IT operation, security and management issues to an external service provider or vendor, outsourcing any portions of an organization's Information System has significant risks that can sometimes become detrimental to the outsourced organization. According to the Commission on Government Outsourcing, "when outsourcing an organization exposes itself to significant risks in terms of security, accuracy, and completeness of information (Holroyd City Council, 2008)". Comprised in the rest of this document is an
The purpose of this paper is to identify the possible risks to an organization in each of the following outsourcing situations: a) the use of an external service provider for your data storage; b) the use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking; c) the use of a vendor to support your desktop computers; and d) the use of a vendor to provide network support. The paper will include a risk mitigation strategy for each situation.
Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Many organizations outsource jobs to specialized service companies, which frequently operate abroad. The outsourcing trend stands to continue; the latest wave of outsourcing impacts the information technology field. IT outsourcing includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.2
Businesses and other organizations with large databases can benefit from putting their databases in the cloud because it allows them to effectively support and use cloud-enable business applications as part of a wider software-as-a-service (SaaS) deployment (Rouse, M). Furthermore, more and more people are choosing to use cloud database to store and share documents, or even run some software on the web, rather then installing it to their own computer. In addition, cloud database is also convenient for mobile users.
Outsourcing does come with its issues, it lessens the control that they have with how some of or all of their services are delivered. This could have the potential to damage the corporation’s reputation and the liability within the business. Communication is the