The Pros And Cons Of IT Outsourcing

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.

The decision to outsource the critical infrastructure platform of an enterprise, which often includes support for enterprise applications essential for the business ot function, is one with long-range, strategic implications. The role of the CIO is quickly changing to be a strategist first and technologist second, concentrating on how IT infrastructure can be successfully used for aligning IT resources to strategic plans and programs. This decision to outsource a critical component of the overall architecture needs to balance the cost reductions possible on the one hand and the potential to augment internal expertise on the other. This is a complex decision that needs to take into account the business case, cultural factors, IT-based technology factors, and managerial implications as well. The intent of this analysis is to provide guidance to CIOs who need to make this decision and emerge with a stronger IT infrastructure capable of getting their enterprises to their goals and objectives.

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

Through the initial integration of information technology into its core business, Office Supply Incorporated (OSI) attained a large cost advantage over its competitors and reaped rewards in both profits and stock prices. Unfortunately, as Nicholas Carr outlines, IT is becoming more of a commodity for companies and less of a source for strategic differentiation. Moreover, lack of IT expertise within OSI has begun to inhibit the growth of business operations and rising IT costs are shrinking profits. Jim Anfield’s proposition for OSI to outsource its IT infrastructure to Technology Infrastructure Solutions (TIS) provides the opportunity to not only match the pace of business growth,

“Most: (Hendrickson, R. M., Lane, J. E., Harris, J. T., & Dorman, R. H. (2013) states an increasingly important factor in our field is the use of outsourcing. There is literally no function that cannot be outsourced from laborer, to equipment technician, to staff personnel, to management

Due to outsourcing, the CIO’s role has become less technology-centred, they instead act as the connecting factor between technology and the strategic needs of the organisation. (Gefen, Ragowsky, Licker & Stern, 2011). In the past, the CIO would provide IT solutions and infrastructure, and there would be minimal collaboration between their IT department and other departments within the organisation. Now, the CIO must be more collaborative with the business and become the business integrator, using their IT knowledge to adopt and adapt useful technology and outsourced IT

This is because a lot of organizations are not focusing on training because it is not their lead business. Hence, with an outsourced facility, they can manage and help in this area. The next strength of this outsourced facility is for the recruitment and selection. The fact that it will be done outside of the organization, it means that the outsource facility have higher understanding on the job market, skills, salary range and more. This can provide the relevant organizations with relevant recruitment and selection without making the organization to suffer from paying more than what it needs to be to a recruit with the skills

Honestly, what is outsourcing and why do we as a business even need this type of idea to take place today? In order to understand outsourcing, we first have to define what outsourcing is. Outsourcing can be defined as using an outside company to provide service rather than hiring in-house workers. Now we have to determine why businesses need outsourcing. Typically businesses perform their own tasks themselves, but nowadays we find outsourcing becoming a lot more common. Outsourcing can be as simple as hiring another to do one job or as complex as putting business in abroad countries.

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!

Many Companies nowadays have engaged outsourcing strategies to reduce cost. Instead of doing it by their own staff, buying machines for fabrication. they engaged vendor to do it for them. There are pros and cons when dealing other company to provide/manufacture/assemble goods. Advantage of outsourcing is that It's undeniably true that it's cheaper to rent a factory -- and its workers -- than to maintain them yourself. Good outsourcing must have a very good planning to overcome some changes. The contract must be very well done, well define to adopt changes and will not result to unexpected rise of cost. Rise of unexpected cost is then called the overlooking hidden cost. Some of the hidden cost are as follows:

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.

Kamensky and Morales (2006, 45) define outsourcing as a management strategy that contracts out organizational activities to vendors or suppliers who specialize in these activities in order to perform them more efficiently and effectively. Outsourcing is defined as the practice of turning over entire business functions to an outside vendor that can supposedly can perform the specialized tasks better and less expensively than the organization choosing to outsource. Outsourcing differs from privatization in that outsourcing, the work load is shifted from in-house government providers to the private sector, but no transfer or sale of assets has occurred. Outsourcing needs the government to remain fully responsible for the provision of all services and management decisions. Other transactions include direct vendor delivery, hiring long term trained staff, etc.

According to a Global Outsourcing Survey from Deloitte, 35% of respondents stated that one of the key benefits of outsourcing that they value is the ability to accelerate their business through innovation.

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

For most managers and executives alike, one of the key problems facing any organization in the 21st century is the ability to effectively manage and motivate personnel to establish ways that technology can improve but not emasculate the worker, and to provide a positive, optimistic, and forward thinking work environment. In combination with this management challenge is the very nature of globalism the ability to extend markets to other countries using the appropriate model that will ensure a win-win situation with the host country and corporate liaison (Going Beyond, 2002). The entire philosophy of work, jobs, labor, and career vary in each culture, even within divergent countries, and most assuredly by the chronological age of the individual. Within the United States, and to a lesser extent, most of the First World, the idea of "work" and a "job" are tied to a person's internal view of themselves and their contribution to their own personal growth, as well as the idea of career growth. Career is much more than an economic term, far more than earning money, and ties more to psychological factors than simply "making a living." In other countries, the idea of human resources and labor are often at odds within a particular culture or socio-economic unit. For example, manual labor, or repetitive labor that requires only basic skills (e.g. assembling circuit boards or sewing) is usually viewed as only a means to an end, whereas some countries also have a burgeoning class of