It Outsourcing Paper

Introduction

        In today’s technological world of high speed internet the accessibility of computers and servers from anywhere around the world has become easier and be connected to the organization information at any time of the day and from anywhere in the world is easier. For any organization, outsourcing the information technology (IT) to other countries is cheaper than to maintain organization information technology 24/7.

        This paper discusses the various aspects of outsourcing the IT function from an organization. This paper discusses about the factors that may lead to a outsource IT, factors that might lead the manager not to consider outsourcing, risks associated with outsourcing the IT function, benefits associated with outsourcing, costs involved in outsourcing agreement and dollar impacts that are expected, and finally discusses about the implications to the business organizational structure by outsourcing IT department and personal issues.

Factors that lead to outsourcing

Factors that lead a manager to outsource the information technology (IT) function are the costs associated with having the project in-house and needing to employ people for short time for the accomplishment of the project and managing big team is one of the factor that managers consider to outsource and not worry about managing the project in-house. Instead of doing the projects in-house and managing many people, the managers consider to employ core people for the projects like architects, project managers, projects leads and outsource the time consuming development with many people. Another factor is the technical resource management, with resource moving from one job to another job leaving behind the huge gap in the technical expertise and it takes more time to fill in these gaps. Project timelines are another factor in outsourcing, to complete the project on time with huge technical resource in a short time.

Factors that might not lead to outsourcing

The factors that might not lead an organization to outsource is the control over the information technology of the company to the vendor company and it creates more dependencies on the vendor and in case of emergency where the vendor is not able to support will impact the organization both in business revenue and loss of customers. Another important factor that many companies do not go for outsourcing is the security issue. The important company information along with personal information of the customer which is an intellectual property of the organization.

Risks associated with outsourcing IT

There are many risks associated with outsourcing the information technology to outside country is the security, loss of business knowledge, vendor failure to deliver and productivity fluctuations. Every organization takes high importance in protecting their customer information and business model, which is the success factor for the organization. The business knowledge is a risk to the organization when a third party vendor controls the business for the organization.