Evaluation of the Competitive Advantage That Can Be Gained by Companies through IS/IT 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.

It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.

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.

Outsourcing is a process of a company obtaining the services from an outside vendor. These services can be of different forms like IT services for a software company, voice services for a customer support industry, legal services for companies and small part suppliers for manufacturing companies etc. The main reason for a company to outsource its services is cost savings

There are various benefits for CIO outsourcing. While you are operating a business, it is a necessity for you to make wise decisions that will save you stress and money. If you lack the knowledge to manage your technology you can take the easy route by relying on the proficiency of a professional to provide you with the right solution. Using a seasoned professional increases the efficiency of decision making and will help you to save time and cost. With CIO outsourcing, you will have a better time focusing on running your business rather than being involved with the stress of trying to solve technological issues. This is a solution that gives a business access to a dependable team of professionals with a depth of experience.

Outsourcing Work. Outsourcing means just what it says - going "out" to find a "source" to undertake the work. The most obvious advantage of outsourcing appeared to be the cost savings that would come with not having to purchase additional equipment or work space and not having to add to the employee headcount. However, it was noted that some organisations are now doing more themselves in order to develop or preserve their expertise and self-sufficiency.

As reported by SupportWorld, “among organizations that outsource IT work, the percentage of their total IT budget going to service providers rose at the median from 6.1 percent in 2009 to 7.1 percent in 2010 and then jumped to 8.6 percent in 2012” (Thompson, 2013). These figures articulate to a rising trend in IT outsourcing where increased offshoring and/or outsourcing of services operations has altered the IT service customs from internal command and control of IT assets to IT service as a utility (Thompson, 2013).

outsourcing, there are several steps involved. In order to be successful in outsourcing, all steps must

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

In the past few years, although outsourcing has been seen as a common method used to achieve a successful business, many literatures on Information System still believe that most of the software could be better off build in-house and this can also be supported with the fact that there are evidences of organisations that took a significant damage from outsourcing. Therefore, whether or not a company should outsource part of their projects, it all depends on how the organisation manages its outsourcing system. This paper is going to examine a little bit of outsourcing challenges, outsourcing management processes and as well as the better ways to obtain full benefits from outsourcing.

Outsourcing, more commonly known as sub-contracting, is a business process in which a third-party provider is contracted to do a job function instead of managing them in-house.

Outsourcing is contracting out with third party for a product or service. Sometimes, outsourcing employees from one firm to another is also possible, when an organization lacks in skilled persons and technologies. Outsourcing tools are used by owners to run a better facility and by facility managers to build a better career. The most common areas of facility management that are used to outsource are custodial, landscaping, system maintenance, construction, engineering and management of property. Outsourcing has become one of the most important knowledge areas of project management, which is increasing with pace. Outsourcing facilities first began at banks and expanded for manufacturing, utilities and healthcare. As the outsourcing brought into light over time, risks began to arise. Common risks involved in outsourcing are improper communication between client and vendor, imperfection in project scope and improper specification of requirements. Although risks lead to outsource disasters, it depends on how well the strategies for managing them are carried out. Outsourcing buyers look for meeting triple constraints neglecting triple constraints. Automation could resist organizations from outsourcing but, trends in outsourcing bring the market value for outsourcing.

Whether one is running a small business or an established company, outsourcing is one of the paramount ways of attaining professional services at a fraction of the price of hiring a department or a person on a full-term basis. Furthermore, as the business grows, there is no denying that outsourcing becomes a more realistic solution, whether it is a human resource, information technology, or even accounting. Additionally, outsourcing has become popular since it permits business organizations to remain focused on its key competencies while allowing experts to handle theirs. Whatever reason one may have the use for outsourcing, it is almost obvious that one stands to gain in the long run due to the attainment of services at a fraction of the cost (Maon, et al 2010).