ib_p05_outsourcingprosandcons_presentation

ib_p05_outsourcingprosandcons_presentation - Outsourcing...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style  5/11/09 Outsourcing Research Paper Advantages and Disadvantages   TERRENCE GLEASON GLOBAL STRATEGY AND PLANNING BUS 540 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Outsourcing Overview  The benefits IT can provide a company, independent of its  size, are common knowledge, as are the rapid changes in  the IT field.  It is generally held as a good idea to turn IT operations and  especially IT development over to external providers, as it  significantly saves on staff, equipment, training and  maintenance, as well as it allows customers to concentrate  more on business.  The lack of IT professionals in developed countries reached  critical proportions, with 340, 000 vacant IT positions in the  USA alone. This fact makes outsourcing increasingly challenging and  expensive. The solution is, therefore, to go offshore. 
Background image of page 2
Advantages  Here are some of the reasons why outsourcing is  a better choice for managing the IT department,  rather than maintaining IT internally: 1. Activity can be performed better or more cheaply by  outside specialists.  2. Activity is not crucial to achieving competitive  advantage. 3. Reduces firm’s risk exposure to changing technology  and/or changing buyer preferences.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Advantages  4. Streamlines firm operations in many ways to Cut cycle time Speed decision-making Reduce coordination costs 5. Allows firm to concentrate on its core business. 6. Top IT professionals are available offshore and they can  work for you. 7. Customers can be assured that their projects will be done  on time and according to the highest quality and  technical standards. 8. Customers are sure to save at least 50 per cent of all  expenses if development is done in-house, not even  taking into account the expenses on infrastructure and  equipment.
Background image of page 4
Advantages  9. It is usually much easier and faster to start up a project  offshore than in-house. Besides, offshore companies can  take projects at any stage. 10.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2008 for the course CISC 104 taught by Professor Lynch during the Spring '08 term at Northampton Community College.

Page1 / 14

ib_p05_outsourcingprosandcons_presentation - Outsourcing...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online