Advantages and Disadvanatges of Outsourcing

INTRODUCTION

Outsourcing is one of the new ways to expand the business or the skills to achieve success or target higher than usual. Outsourcing can be defined as any kind of task, operation, job or a process that is done by employing employees in an organization, but it is contracted out to a third party for a predetermined period of time. In addition, the functions performed by these third parties can do the work in the area or outside the area. For example, a company requires expertise in a field and a lack of expertise in the country, they can contract a specialist from outside the strict conditions laid down and agreed.

Most times outsourcing are mostly done by large companies where their status is stronger and the economy and their finances well. Small companies often rarely do the outsourcing process as thought it was not very safe and may cost relatively high. Assuming they are too short and they do not quite understand the advantages of outsourcing itself. With this advantage they can develop their skills with the expertise they can only be imposed from the outside with a very reasonable cost compared to those taking experts from abroad to their companies which necessarily increase the cost of their operations.

As performed by the Royal Bank of Scotland which they outsourcing employees for information technology projects and their information systems from abroad among them junior technician who comes from India. But in this case caused some problems in the system that they run that there was some problem in the system data lost due to software updates they freeze. Consequently, millions of transaction have affected by that problem.

1.0 Question 1

Competitive advantage can be defined with multiple me...

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...company may end up bearing huge cost of damage control such as happen at RBS who the Register speculated that it is done by inexperience technician who mistakenly delete an important data which result the computer malfunction.

And from this assignment, it shows me on how to devise a careful planning so that it might overcome the problem that might persist in the future. It teaches me to anticipate the problem and devising a plan if the problem should occur. And critical thinking in which test me to think fast with the limited resources.

As a conclusion, this assignment teach me to think, anticipate, act, and analyze obstacle that may happen and in business management specifically in IT/IS field, all element to ensure the system is running smoothly need to be pay attention. And step has been taken to ensure problem that might occur has been down to minimum.