| Today, Information Technology is expected to meet | | | | reasons, the organizations standard and the service |
| with regular changes in IT and performance needs of | | | | provider standards may not be the same, or service |
| economy. To meet the challenges, organizations are | | | | provider may not fully appreciate organizations |
| finding outsourcing a better option. IT Outsourcing | | | | priorities. |
| comes when an organization gives the task to a | | | | Cost Problems may occur if outsourcing is not well |
| service provider to perform an IT function for them. | | | | planned related to management. Lack of planning is the |
| The service provider is a third party or other part of | | | | biggest problem of outsourcing. In addition, services, |
| entity. | | | | processing and technologies change over outsourcing. |
| Many types of IT Services can be outsourced. The | | | | Sometimes due to unexpected situations if an |
| management can outsource for several reasons, may | | | | organization, terminate an outsourcing contract it |
| be operational, technological, financial etc. Operational | | | | includes high costs. |
| conditions can be like, to improve service quality, | | | | An outsourcing decision can have a long-lasting |
| develop and maintain robust systems, reduce the | | | | influence on the reputation and performance of the |
| efforts for real business. The technological benefits | | | | company. The organization's business objectives and |
| may include, achieving IT efficiencies, access to people | | | | how to meet them are accomplished through use of |
| processes and technology, being up to date with | | | | Information Technologies. They examine an |
| changing technology, improving the quality of IT | | | | outsourcing option benefits and risks, the importance of |
| services. The financial reasons may include, bringing IT | | | | the IT activity to the company as whole, the impact of |
| costs in control, minimizing the risk of investing in the | | | | the outsourcing arrangement on the organization's |
| wrong technology. | | | | reputation. |
| Outsourcing has many advantageso It allows | | | | The organization must not only identify its requirements, |
| companies to hire best experts for the required work.o | | | | it must define its obvious performance criteria. The |
| Organizations can put much cash on hand, freeing | | | | organization must evaluate the credentials of service |
| resources to other tasks.o Cheaper in terms of | | | | provider. Finally is the decision whether to continue with |
| salaries, benefits and reduces risks and costs.o | | | | the outsourcing arrangement or not. |
| Organizations can focus on its core components. | | | | It is very important that service provider understands |
| IT Outsourcing also have some pitfalls | | | | the needs of the organization's business processes |
| Operational Problems includes failure of systems, | | | | and systems. The organization must ensure that |
| unauthorized access to data, further; it is possible that | | | | service provider do this. The organization must develop |
| organization is unable to identify the problem. | | | | the thorough understanding of the providers financial |
| Sometimes IT professionals are sent to the service | | | | and operating conditions, for examining the service |
| provider, this results in lack of knowledgeable staff. | | | | provider's operational and financial ability to fulfill the |
| Service Problems may be the difference between the | | | | organization's needs and objective's. |
| services of service provider and what the services | | | | Concluding the topic, IT outsourcing should be the |
| organization wants. That may be due to following | | | | integral part of a company's overall business strategy. |