A Brief Note On IT Outsourcing

1. Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.

Nowadays, outsourcing is a viable expense sparing technique when used legitimately. It is now and again more affordable to buy an exceptional from organizations with comparative advantage than it is to prepare the great inside. As example of an assembling organization outsourcing might be Dell purchasing some of its components from an alternate producer to spare on handling expenses. Then again, organizations might choose to outsource book keeping duties to autonomous bookkeeping firms, as it may be cheaper than holding an in-house accountant.

By use Information system or Information technology outsourcing the companies can gained competitive advantage with others. Firstly, by reduce the cost of hiring. For information the pay for hiring an IT professional is a very expensive. The expertise of IT regularly involved expansive pay prerequisites and relying upon the size of business, that will most likely be unable to support paying that much salary. Assuming that people run a little or moderate sized business, outsourcing the IT capacities of organization can save large percentage of profit and still get the IT services needed. This salary could be put to better use in different important expenses.

Secondly the hidden costs when hired IT professional. Same like the first point in avoiding pay large amount of salary, the companies also can avoid hidden costs. When hiring an IT expertise, the company will invest a large amount of money on the front end. As example, the company need to buy a computer, prepare an office, a desk, a phone and miscellaneous tools that require complet...

... middle of paper ...

...ces

Internet

Computer Hope, (2013), What Is System Failure, Retrieved on November 2013 at http://www.computerhope.com/jargon/s/systemfa.htm

Essent Corporation, (2013), The Top 10 Benefits of Outsourcing IT Through Managed Services, Retrieved on December 2013 at http://www.essent.com/News/Blog/The-Top-10-Benefits-of-Outsourcing-IT-through-Managed-Service

Garret System, (2011), How to Protect Against Computer Failure, Retrieved on December 2013 at http://www.garrettsystems.com/index.php?option=com_content&view=article&id=51:how-to protect-against-computer-failure&catid=31:general&Itemid=46

Margaret Rouse, (2010), Definition of Insider Threats, Retrieved on December 2013 at http://searchsecurity.techtarget.com/definition/insider-threat

Margaret Rouse, (2007), Definition of Outsourcing, Retrieved on December 2013 at http://searchcio.techtarget.com/definition/outsourcing