IT Outsourcing Essay Example | Topics and Well Written Essays - 750 words

IT Outsourcing - Essay ExampleInformation technology processes be primary among those sourced as they call for expertise and can dramatically boost the brand image of a association. Since outsourcing has long been taken on as a cost-cutting strategy, companies will want to identify services that can be leased out to experts to perform them. More all over, outsourcing enables companies to achieve flexibility as they can take advantage of time differences as the companies hired out are usually overseas. Besides that, where a company is facing great take aim during peak seasons, they can accomplish this demand by hiring out manufacturing processes to overseas companies with the expertise. This is quite beneficial to a company as it gives them an edge over their competitors in terms of surprise availability and ability to meet consumers requirements consistently (Blokdijk, 2008). With respect to IT, service value chain can be achieved by for instance where companies glide slope a company to provide storage through cloud computers and provide applications that streamline operations development customized software. Most sought after is web hosting services, there are risks attached to this that will require lately consideration and analysis. These are related to the vendors, such that their being in the driving seat allows them to take authorization of operations. This could result in conflict of interests, a company may lose its identity while associating with accredited vendors, managing and directing vendors may prove challenging and when the outsourcing company decides to end the partnership with a vendor, critical acquaintance goes with the vendors which may prove risky and valuable as they will be vulnerable to competition (Kroenke, 2012). Hence, it is of import that companies establish fundamental principles when making a contract with vendors or suppliers of IT services. This ensures there is a meeting of minds allowing a cohesive and mutually beneficial relationship to exist. However, this should not be done in a compulsory manner as it may build reluctance from the vendor. The buyer should notify the vendor what the expectations are so that the vendor understands the obligations faced by the company. Prior to this, a company seeking to outsource IT services should do a thorough background check on potential vendors or suppliers to make certain they are reliable and competent to perform the services. This prevents a situation where quality of service from the vendor is below par. An outsourcing company should also be careful not to entirely expose its intellectual capital, in form of skills and knowledge, to the vendors as this may prove damaging if accessed by the competition (Blokdijk, 2008). From the mini-case study, it is understandable why management would want to outsource IT services seeing as it should support 5,000 students, excluding staff and they have an accommodating budget. Nevertheless, having an extra 15 employees, over and above the 30 employees, all dedicated to the same business function may prove expensive and redundant. The university needs to rationalize the outsourced services to ensure they maximize capital utilization, where capital in this case refers to living employees. In addition, the associated costs of outsourcing services should be supported by quantifiable benefits accrued from the services. It would be commonsensical to outsource IT s