Risks of IT Outsourcing Essay

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

The case identifies struggle and problem faced by organizations outsourcing IT projects and allows us to ponder on how to manage outsourcing well.

The full name of the bill is the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is mostly known as Dodd-Frank. The Dodd-Frank Act is a United States federal law, which is divided into sixteen titles that places major regulations on the financial industry with the purpose of restraining another major financial market collapse. The stated aim of the legislation is: “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes” (Thomas, 2010).

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,

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

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.

In Macbeth written by William Shakespeare, Macbeth is influenced by his wife. Three Witches appear and reveal a prophecy, which leads him to complete misery. Lady Macbeth, Macbeth’s wife attacks him in verbal ways and causes him to change. Lady Macbeth infuses Macbeth with hatred and builds an ardent desire for power that causes Macbeth to do many unforgivable things. Macbeth and Lady Macbeth are so power hungry that they go beyond their boundaries to get what they want.

The only means for the IT companies to maintain business and to have minimal losses was to transfer their services overseas to India. Nonetheless, many of the people who had lost their IT jobs saw this as a disadvantage since they were the ones who had to either find another job that matched their skills or had to obtain new skills. Along with this, they, along with the majority of the workforce, saw outsourcing as something harmful to the American economy and that it caused increase in cost (Easterls, 166). These outlooks are not necessarily true, however.

Page 2 of 4 customers that rely on the consistent availability of OSI’s products. Therefore, the successful outsourcing of OSI’s IT infrastructure would not pose a threat to the fundamental business strategy and could even help reduce risks in their highly competitive market. In analyzing the factors that could make outsourcing IT infrastructure to TIS valuable to OSI, it’s useful to consider Carr’s three main “Rules for IT Management.” The first of these rules says to “spend less,” as more is not necessarily better when it comes to a commodity input such as IT. In outsourcing, TIS will provide cost savings to OSI in a few main ways. First, there would be a lower capital investment in hardware for OSI, as these costs could be diverted into operating expenses paid on a monthly basis to TIS. Moreover, these operating expenses could be based around a “per-transaction” model so that their costs could more closely follow fluctuations in the market. This means that if one month OSI saw a reduction in online sales and thus a corresponding reduction in server usage, OSI’s costs could scale with

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 wrong IT can lock you into yesterday's practices, in effect 'fossilizing' your business. Many companies outsource in order to open up their IT to new levels of flexibility and adaptiveness. At Cap Gemini Ernst & Young, our global experience spanning all significant technologies and all business sectors empowers us to match your IT support to your ongoing business needs, however far and fast they might evolve.

Today most of the companies wants cost cutting in their business. Nowadays outsourcing helps to achieve such goals. According to the internet, (www.flatworldsolutions.com), outsourcing can be to as the allocation of specific business processes to a specialist external service provider. Outsourcing is an arrangement in which one company provide services for another company that missing or don't have a specialist in the certain area of expertise. Most of the times, an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks.

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

Moving some of your organization's functions to and to an outside service provider(s) is a business strategy commonly in practice today. Organizations now outsource IT Solutions for convenience. Should you only focus on the "convenience" factor here? Yes, outsourcing IT Solutions to an external service provider comes with many benefits. Anyway, nothing in this world is perfect. I mean, we should also focus on the downside of outsourcing in detail here. So, if you are a business owner who plans to outsource; you will benefit from reading this article. Let's get started!

The sun has been an important part of civilization since ancient cultures roamed the Earth. Groups of people throughout history have worshiped the sun for allowing their crops to flourish, either by creating places to praise the sun or observatory areas to gaze upon it. Without the sun, life as we know it could not exist. The heat released from the sun is comparable to the amount of energy released from burning trillions of tons of coal per day. United States coal plants are held accountable for releasing numerous harmful chemicals into the atmosphere and soil, including: carbon dioxide, mercury, and lead. In order to reduce the harm done to our planet we must use other methods of energy production. Solar energy is the most efficient and cost-effective solution for the ever-growing problem of overusing resources and polluting the environment.