IT Outsourcing Week 2 Individual
August 5, 2013
The purpose of this paper is to discuss the various aspects of outsourcing the IT function of an organization. The factors for deciding to outsource as well as not to outsource will be discussed. The risks and benefits will also be discussed. The costs associated with IT outsourcing contract will be discussed along with the implications to the business organizational structure.
Factors For Outsourcing
There are various reasons a manager may consider outsourcing the Information Technology (IT) functions to a vendor outside the organization. One of the factors that may lead to the decision to outsource is to allow the organization to focus on the core business functions of the organization. With the outsourcing of the IT functions to an outside vendor, this allows for the business to concentrate on the core competencies of the business.
Another factor that may lead to the decision for outsourcing is that the business can be sure to stay on the cutting edge of technology. The outsourcing of the IT functions to a vendor who specializes in IT specific functions should offer up to date hardware and software. This keeps the organization from falling behind in technological resources and keeps the company from having to spend large amounts of money in updating technology (Gonzalez, Gasco & Llopis, 2009).
Factors Against Outsourcing
One reason the manager may decide not to outsource to an outside vendor may be to avoid the loss of control. The contracting of the entire department or even a single task to an outside vendor translates to the turning over the management and control of the function to another company. Another reason to not outsource, is to avoid the additional possible security issues that comes with turning your information over to an outside vendor (Bucki, 2012).
Risks Associated With Outsourcing
When outsourcing to another company...