Question

PLEASE WRITE ANSWERS OF APPROXIMATELY 1-2 PAGES (DOUBLE SPACED, TIMES NEW ROMAN FONT, 1 INCH MARGINS).

Describe the advantages and disadvantages of outsourcing an organization’s IT.

Answer 1

Outsourcing could be defined as the process in which the organisation transfers its one or two operations or department of the work outside of the organisation to the specalised group of people to perform that task in a better manner. There could be number of advantages and disadvantages while transfering the IT department for the outsourcing.

Advantages for the same are:

1. Focus: One of the main advantage for outsourcing the work could be the increased Focus one is getting to do in its organisation on more relevant areas like Production or Sales department while outsourcing the IT department to a more specialised organisation to handle the same.

2. Cost effective Technology: Another advantage is the cost effectivity the company could enjoy as the organisation who would take the incharge are specialised themselves and thus would provide and create the technology in a better manner which could be used by the organisation in a better way.

Disadvantages for Outsourcing IT are:

1. Communication Level: One of the main disadvantage the company would be facing would be the lack of effective communication because the technology would now be provided by an external organisation and thus it would hinder the inter as well as intra organisation communication with employees and clients.

2. Loses Control: By outsourcing the department to an external organisation, an organisation sees a fear of losing the control of that department. As the department is now not within the boundaries of the organisation, to manage and to effectively control the same task becomes a problem and organisation loses its control.