Quiz on Information Systems and Outsourcing

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,

Information system is a combination of hardware, software, infrastructure as well trained personnel who organized and facilitate planning, control, coordination and decision making within an organization. Information systems are also able to implement a vital integrated set of components for collecting, storing, and processing data. With this, it provided organizations with the necessary information, knowledge, and digital products needed. Information system bring the meaning of business applications that manage their operations, compete in the market place, manage accounts and human resources. This system have a vast variety of components that are crucial for a enterprise, business to function at his highest level, IT software is responsible that all system are reliable and up to date.

| 1) Reduced personnel costs2) Access to better and more specialized talent3) Allows for better growth potential, particularly concerning shared services

IT Organizational Restructure is necessary for the current IT department to be developed into a CIO organization. Outlining a new framework and identifying roles and responsibilities will help to shape an effective organization to be in a better situation to support the company’s goals. It will also better align the current and future IT investments and

The fourth advantage to outsourcing is that it can help develop internal staff. As I stated in the advantage above, outsourcing projects help meet performance peaks, but it can also assist in completing projects that are nearing the end of its requirements. What this does is allow the company staff to focus on new initiatives that

There are many benefits of outsourcing that companies and countries seize to take advantage of. The biggest benefit is reduced costs of infrastructure and labor. According to the OneNeck IT Solutions, “The attraction to overseas outsourcing has traditionally been reduced costs. By moving support services to India or China, for

2) The company can increase its efficiency and focus on other areas of business if it outsources a particular process.

Outsourcing is the lifeblood of IT. The prevailing theory is that outsourcing saves companies money and enables them to engage a broader pool of IT skills and talent than they could in-house.

Identify the level and types of IT support needed for the type of devices and applications provided by the organization.

Saving money isn?t the only reason to outsource though. In Dash?s article the number two reason given was ?Having access to experts? that was given by 38% of the companies. But what does that mean? Simply put it means that good help can be hard to find. And if you?re a company that needs to have something done it may be hard to wait and see if you can find people that are able to do the work for you. It may be easier to outsource to a company that already has skilled employees trained to do the work.

Executive management is increasingly recognizing that sometimes the disadvantages of outsourcing outweigh the advantages, even after an agreement has been signed. Many companies are canceling their outsourcing agreements, or deciding to hire their own staff to provide in-house services once again.7

Because of the important relationship between insourcing/outsourcing and competitiveness, organizations must consider many variables when considering an insourcing/outsourcing decision. This may include a detailed examination of a firm’s competency and costs, along with quality, delivery, technology, responsiveness, and continuous improvement requirements. Because of

Outsourcing should only be implemented when a company’s core competitive advantages are not affected and then when

Therefore, IT managers need effective management systems and processes to help them deal with the issues and challenges inherent in their responsibilities. Feeny and Willcocks (1998) suggested that core IS competencies are needed to assist the development of IT, measurable in terms of IT activities supported, and resulting business performance. Figure 1 shows the 9 core IS competencies. The research carried out indicated that in order to have a successful IT function there are four major tasks which need to be accomplished. These include: co-ordination and leadership; ensuring technical capability; managing the external supply; and meeting the business’s requirements.