Outsourcing is the activity of contracting other specialised companies to perform the business processes that organisations can't or do not wish to undertake themselves. Traditionally, IT outsourcing has involved an external service provider being engaged via a formal contract to deliver part or all IT functions to achieve specified results. The contracts are usually for a fixed price and for a specified period of up to ten years. Services that are outsourced vary greatly, being based upon the requirements of each organisation. These services include IT service/help desk, LAN/WAN management, desktop services, mainframe operations, web hosting and application management and support. To date, outsourcing contracts have not usually included applications development, IT&T security policies, or strategic planning, as many organisations see these aspects as critical to their business. Outsourcing vendors are also commonly involved with addressing support and manpower shortage issues.
Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors.
Recommedations for a successful outsource include establishing a flexible contract, forming a partnership and clearly identifying scope and responsibilities. The massive move to outsourcing presents a series of new challenges for organisations, both public and private. With the increasing demands on organisations to gain greater access to cutting-edge technologies, to highly skilled people, and to exit non-core activities, organisations are seeing IT outsourcing as the way forward. .
There are many reasons why private and public sector organisations decide to outsource IT. The most compelling benefit of outsourcing is cost savings, which, by some estimates, is 20 to 40 percent less than the expense of maintaining the same function or process in-house (U.
Outsourcing is an essential part of this idea. ... Everyone should be influenced by outsourcing. ... Outsourcing does both to the United States. ... Outsourcing is about efficiency. ... Experiencing hidden costs is a huge outsourcing risk. ...
Next, several financial issues can make outsourcing appealing. ... THE BENEFITS FROM OUTSOURCING Outsourcing has identified numerous potential benefits. ... THE PROCESS OF OUTSOURCING There are many ways to manage IT outsourcing since every company has different culture, strategy, structure, people, and process. ... However, I"m here going to use Xerox's outsourcing process. ... THE PROBEMS IN OUTSOURCING Many outsourcing contracts are structured for very long periods in a world of fast-moving technical and business change. ...
One should emphasis that outsourcing is an issue that is not specific to distribution. ... There are different reasons for organisations outsourcing their distribution function. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
Nowadays, many organisation are outsourcing their non- core activities to an external agents. ... One should emphasis that outsourcing is an issue that is not specific to distribution. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
Mike Johnson (1997) maintains outsourcing isn't a new idea. ... Outsourcing has fostered the concept ofcore? ... Outsourcing is becoming increasingly important in a constantly changing economy. The Australian Outsourcing Summit 2000 focused on this importance, and on the emergence of outsourcing as a powerful tool for transforming organisations and driving innovation (Corbett 2000). ... their organisations, have championed the concept of outsourcing (Klepper 1998). ...
The company that we have been asked to evaluate is IBM who is currently in the process of outsourcing their human resource functions to Fidelity. ... It is important that we as managers become familiar with outsourcing and its potential benefits if we what to become effective and efficient managers. ... Looking at it from simple terms like that the answer is it can't but outsourcing is a little more in-depth than it may appear on the surface. ... We have now briefly looked at the three areas where IBM can benefit from outsourcing let's wrap this paper up. ... In this pap...
Discussions are also made on the risks involved in outsourcing. ... The two main types of outsourcing are Information technology (IT) Outsourcing and Business Process Outsourcing (BPO). ... Why outsourcing Outsourcing is an increasing attractive business option because overall, companies tend to outsource to alleviate administrative burdens and focus on strategic areas. ... That's good news about outsourcing. ... Another major risk in outsourcing is Loss of proprietary information. ...
Is global outsourcing an opportunity or threat? ... The airline companies losing money had nothing to do with outsourcing. ... It is funny how people are just now making an issue out of outsourcing, when outsourcing has been going on for the last 40 years. ... Outsourcing effectively promotes trading between global markets. ... Outsourcing enhances the quality of lives for poor countries. ...
So does this mean that outsourcing white-collared jobs will in the long term have the same effect as did outsourcing blue-collar jobs? ... (Outsourcing Jobs: Is it bad? ... I believe outsourcing to be good. ... Sources -Outsourcing Jobs: Is it bad? ... -Outsourcing: The Word on the Hill Business Week. ...
