Outsourcing Strategies
Outsourcing Strategies
Even after more than 17 years, the two companies have not realized that IT/IS is a core activity that should not be outsourced. These companies do not seem to understand that IT is a core activity that helps operations of the company run effectively. Evidence shows that the two companies think that outsourcing IT from IT professional might be the best option. In the short run, these companies may save its expenses simply because they only outsource those services when they want to use. In the long run, the companies may incur a lot of cost as compared to installation cost. Apart from cost, companies are at risk of sharing part of confidential information to competitors. Outsourcing IT may affect customers simply because services offered may be of substandard, (Vander, 2010).
The current globalization and technology development creates risk in the world of IT/IS outsourcing. Companies should take IT as a core activity that is of importance towards organization development. In the current future, companies will not be outsourcing IT services from professionals. This indicates that each and every organization will have to employ its IT professional in order to provide IT services when required. Most companies have engaged in activities of automation their activities, (Huber, 1993). This approach clearly indicates that IT activity is a core requirement in organization. Companies will in the future change the perception of IT outsourcing and see the importance of taking it as a core activity. Installation of IT/IS will help the company ensure that its operations are secure from competitors. Evidence shows that IT concept is changing to a direction where each company will have its own IT department.
Reference:
Cross, J., (1995). “IT outsourcing: British Petroleum’s competitive approach,” Harvard Business Review, May-June, 94-102.
Huber, R.L., 1993, “How Continental Bank outsourced its ‘crown jewels’,” Harvard Business Review, January-February, 121-129.
Vander, V. C. (2010). Is IT outsourcing Still In? Retrieved from, http://www.governing.com/topics/technology/Is-IT-Outsourcing-Still-In.html, On November 18, 2012
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