Functions and Advantages of Outsourcing

1) Introduction

Definition

What is outsourcing? Outsourcing is one of the business strategies in getting the items such as service or goods from foreign suppliers or outsider to replace the internal resources. But, outsourcing also can be defined as a strategy used by different companies to save the production and manufacturing costs by transferring the parts of their work to outside suppliers rather than completing the goods by internally. Besides, outsourcing also known as a third-party, where the company asks the others party to solve their problems. As an example, a company needs to advertise their goods to market the products and they have the marketing department to handle the task. But, the problem is, they want the advertising in the up-to-date level that was beyond their capability. So, the company was hiring tan advertising company to complete their needs.

Moreover, outsourcing can be more affordable to purchase goods from the others company with some benefit compared to produce the goods by internally. As an example, Dell company, they was purchase some of the computers components from others manufacturer to reduce the manufacturing and production cost. So, in others side, the company can decide whether to outsource book-keeping duties to independent accounting firms, because it may be cheaper than retaining an in-house accountant.

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

Today, outsourcing has grown and became the important party because the economic and competitive advantages have made the outsourcing is essential for all companies in settled down the problem faced by the compan...

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...ystem failure is caused by the inexperienced operative in India, so the related information is about the treats from a junior technician from India. I also have learned about how the threats affecting the performance of computer system.

Based on the incident that was happened in RBS, I can conclude that there must be have a way in order to prevent the threats which was computer system failure. In my opinion, the company should pay their attention on the system failure and find the effectiveness operational strategy to prevent the problem of computer system failure. The company also must measure how the strategy can prevent the threats and makes sure the business performances can run properly.

From this case study, I have more understanding in how to manage the outsourcing risks, and the factor of computer system failure and how to avoid the problems directly.