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Impact of information technology on business
Impact of information technology on business
Impact of information technology on business
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The main objective of any individual or group going into business is to make profit. Their profit is the difference between the cost of providing the good or service and the actual cost to the consumer. As more companies venture into the same line of business the competition for customers gets intense thus bringing into play the law of supply and demand. Oversupply of a good or service pushes the price consumer has to pay down. These forces have pushed managers and business strategists into the search for ways to increase the bottom line while reducing cost of good or service delivery.
Using information technology has been a way to maintain business competitive advantage for many of the biggest companies. Typical uses of information technology in business are the automation of payroll, human resource management, key business processes etc. The desire by managers and business owners to increase the bottom line has further pushed them to explore several strategies to further reduce the cost contribution of IT to the total cost of goods and services they provide. Among such strategies include off-shoring, offshore outsourcing, near-shoring and co-shoring all aimed at reducing cost of the information technology used by a company. This paper aims to explore all the above listed strategies and specify the most cost effective measure associated with information security risks to adapt.
Introduction
Outsourcing is the hiring out of work by a company to a separate existing unit or company with more specialization that can do them more efficiently and less expensively. This helps the company outsourcing work increase profit while shedding work. Over the years businesses have adopted the strategy ...
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...e options for outsourcing of work, co-shoring is arguably the one that has the lowest information security risks. It pulls advantages from off-shoring and near-shoring into one business model while reducing disadvantages associated with adopting any of them in isolation. For information security concerns, a company can decide to manage jobs that contain sensitive information near-shore instead of moving it to their offshore partners. This helps companies have sufficient control over their data because of the proximity. Furthermore, costs are further reduced especially if the critical jobs that require constant travel are done by near-shore partners and not so critical jobs done off-shore. This contrasts with full off-shoring which may have greater labor cost reduction but greater travel expenses that can neutralize the effect of reduced labor cost.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Most companies’ primary goal is to maximise profit in order to remain competitive in the market. The concern usually arises in the measures and approaches companies take to achieve that goal and how it will benefit in the short-term and long-term process. (Eccles, 2011)
They have to make sure that they have lower costs, goo quality products, and satisfied customers.
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
With the United States’ economy in a depression and our unemployment rate skyrocketing to record highs, job-outsourcing has moved to the top of the list of controversial issues. Froma Harrop’s essay New Threat to Skilled U.S. Workers and Thomas Friedman’s essay 30 Little Turtles discuss two different viewpoints of job-outsourcing, and their effects on society. Does our government really want to cut back on job-outsourcing, and what can society do to help the issue? Friedman’s standpoint on job-outsourcing shows how it is emotionally beneficial to other countries and Harrop’s factual standpoint shows job-outsourcing regulation, however, I feel that our citizens are unaware of the opportunities and our government is eager to send the jobs overseas.
In this paper, I will discuss the ethics of outsourcing manufacturing from my local community to a developing country. I will view this debate through three different frameworks: Utilitarianism, Pragmatism, and White’s biblical principles. I will also conclude my final view on outsourcing and the benefits of using a framework for making ethical decisions.
Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what
When asked, “What, in your own opinion, would make another successful in this position?” he said, “You need a lot of people skills.” He believes in order to run a barbershop; you need to be able to meet the needs of the customer. If the customer is not satisfied, you will lose their business. You must be patient. If not, the customer will not return for more service. It’s all about keeping the customer satisfied. This led him to the topic of supply and demand. Most of his profit is dependent on what the customer wants. For example, if the customers come in and want to purchase a bottle of water, you have to provide the water at their convenience. This will keep the customer satisfied and ensure their return for more business. Sometimes business gets slow. He feels the need to bring in more customers. To achieve this goal, he offers various incentives such as discounts. The discounts allow more people to come in and e...
No matter how big or small a business is, a business is able to outsource services that they could not do profitable on their own. Outsourcing is shifting all of the costs — accounting costs, including personnel, plus the risk of failure and the responsibility for action — to the third party. In return for assuming costs, the third party benefits by controlling the operation (Coughlan 167). This is the basic definition of outsourcing. Outsourcing has been around since the beginning of time.
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
The goal for all entrepreneurs is to maximize profits and to serve the needs of customers. This represents
The practice of outsourcing jobs is not a new concept. People have been outsourcing jobs for decades. Some people even offshore outsource jobs. There are many opinions to offshore outsourcing based on how it influences the economy. Some people are in favor of outsourcing jobs and some people are against outsourcing jobs. People need to get educated about the great impacts that offshore outsourcing does to an economy. The global economy has started to thrive and offshore outsourcing has profited the consumers as companies want to cut costs and competition, which is why I support offshore outsourcing jobs to foreign countries.