The main threat of IS/IT Outsourcing Essay

622 Words 3 Pages
Question 2
Assess the main threat of IS/IT outsourcing and put these possible threat in order based on important. Justify your answer.

Companies outsource are to avoid a certain types of costs. Among the reasons companies elect to outsource include the avoidance of regulations, high taxes, high energy costs, and costs associated with defined benefits in labor-union contracts and taxes for government-mandated benefits. Perceived or actual gross margin in the short run incentivizes a company to outsource. With reduced short-run costs, executive management sees the opportunity for short-run profits, while the income growth of the consumer base is strained. This motivates companies to outsource for lower labor costs. However, the company may
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Question 2
Assess the main threat of IS/IT outsourcing and put these possible threat in order based on important. Justify your answer.

Companies outsource are to avoid a certain types of costs. Among the reasons companies elect to outsource include the avoidance of regulations, high taxes, high energy costs, and costs associated with defined benefits in labor-union contracts and taxes for government-mandated benefits. Perceived or actual gross margin in the short run incentivizes a company to outsource. With reduced short-run costs, executive management sees the opportunity for short-run profits, while the income growth of the consumer base is strained. This motivates companies to outsource for lower labor costs. However, the company may or may not incur unexpected costs to train these overseas workers. Lower regulatory costs are an addition to companies saving money when outsourcing. Offshoring is the relocation by a company of a business process from one country to another typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring. More recently, offshoring has been associated primarily with the sourcing of technical and administrative services supporting domestic and global operations from outside the home country, by means of internal captive or external outsourcing delivery models. The term is in use in several distinct but closely related ways. It is sometimes used broadly to