Preview

Itm 5200

Good Essays
Open Document
Open Document
1456 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Itm 5200
Part 1 Part 1: Search the internet for the term "IT outsourcing". Find at least two articles that discuss outsourcing, whether beneficial or controversial. Summarize the articles and answer the following questions in a two to three page paper: 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. http://www.itoutsourcinghq.com/ Summary: The above article talks about how IT outsourcing is the most cost-effective way for companies to hire qualified individuals for specific jobs without having to commit to the significant cost or maintaining a year round in house team. IT outsourcing is also good for companies which are in the midst of a launching campaign, product, or new merger and need a large about of technical help in a small period of time. http://www.corpcomputerservices.com/articles/outsourcing-reasons This article (above) outlines the risks and benefits of outsourcing IT functions. Among the risks are the facts that some IT functions aren’t outsourceable, control may be lost by the actual business, and employee morale may be affected. The benefits listed in this article include freeing up working capital for core business functions, saving time and money, and reducing risk. Overall, the article favors IT outsourcing, as the benefits outweigh the risks.
● What are the main types of goods and services being outsourced?
○ The two main types of goods and services being outsourced are Technology Services, which includes electronics/e-commerce and information technologies and Business Processing Outsourcing, which deal with finance and accounting, procurement and supply, customer service/contact, and human resources.
● Why are the organizations in the articles choosing to outsource?
○ Organizations especially small and medium businesses simply don’t have the budget to hire IT staff capable of managing



References: Schwalbe, K. (2010). Information Technology Project Management 6e. Boston: Course Technology, Cengage Learning. Retrieved July 26 from the World Wide Web: http://www.itoutsourcinghq.com/ Retrieved July 26 from the World Wide Web: http://www.corpcomputerservices.com/articles/outsourcing-reasons

You May Also Find These Documents Helpful

  • Better Essays

    When a company is trying to decide if they should outsource some of their IT functions, there are several areas that they will need to research so that they will make the right decision. A company needs to measure the risks, benefits, and costs of outsourcing, and the company will also need to measure the pros and cons of outsourcing the IT functions.…

    • 1088 Words
    • 5 Pages
    Better Essays
  • Better Essays

    CMGT578 Week2 Assignment

    • 822 Words
    • 3 Pages

    In this current IT technology driven age, companies whose primary core competency is not technology may have a difficult time operating and maintaining an IT environment that would give them a competitive advantage in the market place. A large company like Hess, whose mission statement is “…a global company devoted to exploring oil, gas and energy solutions”, would have a difficult time living it’s mission if it was too concerned with how to run their IT infrastructure and the impact it has on their marketing, sales, public relations, communications, and operations capabilities. However, each company must access their unique situation and environment to determine if IT outsourcing is the method going forward. There can be immense fiscal and operational benefits, but also significant risks.…

    • 822 Words
    • 3 Pages
    Better Essays
  • Better Essays

    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 provider for data storage, use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking, use of a vendor to support desktop computers, and use of a vendor to provide network support. This document will also discuss the risk mitigation strategies for each individual situation.…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Tegan Hrad Write Up

    • 3041 Words
    • 13 Pages

    Outsourcing has seemed to acquire a rise in popularity and usage in our modern times. Outsourcing involves entering into a contract in which an in-house company process, or processes, is ultimately handed over and dealt with from a third party’s perspective. I would have to say that there are three primary, helpful factors to outsourcing, especially when it comes to the world of business. To start off, the cost of operations can be trimmed down through outsourcing. This, in turn, would assist a corporation or business in accumulating more lucrativeness. Secondly, every organization out there has the intention of delivering top-of-the-line services and goods. Outsourcing can contribute to more efficient deliveries. Specifically concerning information technology or something that would be considered to be a bit more technical, outsourcing can bolster efficiency within that particular field of a technical nature. Thus, productivity would be improved through outsourcing. Thirdly and lastly, within a set interval of time, an establishment has the ability through outsourcing to complete projects promptly. This is due to the fact that while a third party is handling a certain progression of a certain company, that individual company can now use its human capital and employees – that may originally were going to have to deal with a peculiar development stage of a certain project which has now been outsourced – in other, more beneficial ways. More labor can be put into other areas.…

    • 3041 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    The pros and cons of outsourcing varies by industry, size of organization, organizational structure, and many other components. The pros and cons are highlighted and the fall of Satyam to encompass a full range of accounting aspects. All size organizations outsource a portion of his or her business. Therefore, taking time to reflect on the points identified in this paper may enlighten or create ideas for consideration regarding outsourcing.…

    • 2422 Words
    • 10 Pages
    Better Essays
  • Good Essays

    While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for a smaller fraction of the pay compared to that of their American counterparts. Outsourcing is used by many companies both in and out of the United States; it has proven to be beneficial to the companies that choose to partake in it, while other companies do just fine without outsourcing.…

    • 1938 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Lego Final

    • 1719 Words
    • 5 Pages

    Outsourcing is not a good strategy in the following situations: The risk to expose confidential data is high such as outsourcing HR, payroll and recruitment services. Risk of exposing intellectual property increases which…

    • 1719 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Some managers may have to split their energies between activities that engage prospective customers and concerns with operations outside of the core business objectives (Leung, et al, 2013). Outsourcing alleviates this necessity, and the business managers can focus their energies where their competencies lie. Businesses that must rely on an outside service run the risk of downtime during critical system failures, leading to potential loss of productivity. It may take days before a busy IT contractor can devote attention on the business problem and resolve the issues. This may leave workers idle and cause hundreds to thousands of dollars in lost revenue. An in-house network administrator becomes intimately familiar with the eccentricities and unique characteristics of the network he manages (McWherter & Gowell, 2012). Because of this, he or she is able to deliver results more efficiently, quickly and personally. IT outsourcing can never provide a personal touch that comes close to that of an in-house IT specialist. Many companies reject the thought of giving this up, even though they can save money by…

    • 3443 Words
    • 14 Pages
    Good Essays
  • Good Essays

    First advantage of outsourcing is that the organization is in the position to ensure that it is able to complete its activities in a swift and expert manner. Second advantage of outsourcing is that it helps organization to concentrate on core process instead of supporting processes carried out by it. Third advantage of outsourcing is that the organization will be in the position to ensure that it is engaged in activities of risk sharing over a period of time (Carroll, 2007). First disadvantage of outsourcing is that the organization will have risk of exposing confidential data. Second disadvantage of outsourcing is that it can cause some problem to organization in synchronizing the deliverables. Third disadvantage of outsourcing is that it is not able to have appropriate focus on its customers over a period of time.…

    • 611 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The research of finding of the IT workforce has mentioned two major findings; the first one dispels the myth of catastrophic IT job loss. The number of IT jobs in non-IT organizations is to remain stable in the past few years. There would be an increase in the use of third-party providers. The finding shows that offshoring will increase but through third-party providers. Another finding is that IT departments believe their IT skills need to be critical to retain in-house, given their ability to purchase services in the market place; these skills are related to business domain knowledge, project management, and…

    • 852 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Outsourcing has many advantages, but also faces some disadvantages. To begin, an advantage in a globalized company because of working with external parties would be the expertise the outside company brings. They specialize in the task of the operation, and therefore, that specific task is completed faster and more efficiently. Also, costs are reduced, because it eliminates the need to hire talents to complete the jobs, and without the need of the labor, costs can be condensed from the recruiting expenses. A global, cost-efficient example is when the primary business outsources production to a third party in another country, such as China, who’s labor costs are significantly cheaper than in most countries. Also, management is able to accomplish more tasks and have a more detailed focus on the entire in-house operations resulting in higher quality outputs. Outsourcing in today’s economy is an intelligent business…

    • 711 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Is Outsourcing Good

    • 693 Words
    • 3 Pages

    Outsourcing has been practice for decades, it happens when companies or business contract a third party, someone outside the business, to produce goods or provide services. Outsourcing can be local, within the same country or offshore, outside the country. Some of the job areas companies outsource are Accounting, Customer Services, Human Resources, Information and Technology and Payroll. Outsourcing supporters affirm that this activity provides substantial cost savings to businesses, through paying less to others do their job, at the same time they can lower prices of goods and services. Although outsourcing brings benefits to a company, this activity may limit the quality of products and the availability of…

    • 693 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The recruitment costs and operational costs as well are significantly reduced. Outsourcing avoids the need to hire staff in-house; hence the recruitment and operational costs are pushed to the vendor and the company does not incur these costs. This is one of the main…

    • 4339 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    Outsourcing is the contracting of a business process by another party. Outsourcing sometime involves transferring employee and assets from one firm to another. It can be foreign or domestic contracting and sometimes involves moving a business to another country. Financial savings from lower international labor rates can provide the biggest motivation for outsourcing. Companies will outsource for many reasons. The first reason is time, theoretically no company has the time to take care of everything. Companies seek help from foreign companies to get the job done. Second is money, many companies use cost efficiency as a reason to outsource. The final reason is skills and knowledge. Outsourcing allows companies to bring skills required to run the organization from outside the company. In the 80’s U.S. factory workers began losing their jobs when American cooperation’s realized that they could manufacture their goods cheaper in a foreign country. One after another U.S. plants closed and moved overseas, leaving millions…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Outsourcing is one of the most controversial subjects in today’s business world. Outsourcing is defined as the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them. Functions can be outsourced to either a company or an individual. There are many advantages and disadvantages to outsourcing. It is not just one sided like most people like to believe.…

    • 1086 Words
    • 5 Pages
    Good Essays