LamN.9.6 - 9.6 Assignment Lam Nguyen 1 The case mentions...

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9.6 Assignment Lam Nguyen 1. The case mentions the dependence of BP’s IT organization on external contractors. Why would this be an issue? When is it a good idea for IT departments to hire contractors, and when is it not? Discuss some scenarios. Heavily relying on external contractors has benefits and issues. The advantages are the company can save a lot of money on employee benefits such as expensive on medical, dental, insurance, vacation, sick call, retirement plan matching, and compensation. The disadvantages is the company has no control of the contractor’s work force, and there is concern in keeping the project going, and the contractors which accounted for almost half of the IT employees had access to BP’ database along with other business information. They were not under the control of BP, and they could leave with these information. , in such case, there is more harm than benefits to use external contractors. External contractors provide high degree of flexibility in case of project interruption or sudden change which requires less manpower or more manpower. For
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