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IT - Outsourcing New

IT outsourcing has existed since the 1950s and is viewed as a way to reduce costs, improve flexibility, and increase service levels. IT outsourcing involves working with external vendors to handle some information technology functions like application development, maintenance, database administration, and desktop support. Companies outsource 59% to reduce costs, 57% to focus on business objectives, and 31% to improve service quality. While outsourcing provides benefits like expertise, reduced costs, and risk sharing, it also presents disadvantages such as language barriers, different time zones, security risks, and reduced quality control.

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Gulsher khan Jadoon
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85 views11 pages

IT - Outsourcing New

IT outsourcing has existed since the 1950s and is viewed as a way to reduce costs, improve flexibility, and increase service levels. IT outsourcing involves working with external vendors to handle some information technology functions like application development, maintenance, database administration, and desktop support. Companies outsource 59% to reduce costs, 57% to focus on business objectives, and 31% to improve service quality. While outsourcing provides benefits like expertise, reduced costs, and risk sharing, it also presents disadvantages such as language barriers, different time zones, security risks, and reduced quality control.

Uploaded by

Gulsher khan Jadoon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

IT OUTSOURCING..?

o IT outsourcing has existed since the earliest days of business computing,


beginning in the late 1950s.
o Outsourcing IT is viewed as a way to reduce costs, improve operational
flexibility, increase service levels, reduce management overhead or rapidly
deploy new capabilities.
o IT outsourcing is the practice of
working with external vendors to
handle some information technology
functions.
OUTSOURCED IT FUNCTIONS
• Application development — a service provider is responsible for developing
new or enhancing existing applications (web, mobile, etc).
• Application maintenance & support — a service provider takes over ongoing
maintenance of existing applications.
• Database administration — a service provider monitors and tunes
databases.
• Desktop support — a service provider is responsible for installation,
maintenance, or support of PCs.
• Web hosting and operations — a service provider hosts, operates, or
maintains a corporate website / application/ ecommerce platform
TYPES OF IT OUTSOURCING
There are several types of IT outsourcing, defined by where the outsourced
work happens. These include:
• Offshore: the contracting party could be in another region or another
continent, far from the client.
• Onshore: which means that the contracting party is located in the same
country as the client.
• Nearshore: wherein a company outsources to a neighboring country within
the same region. These countries usually have a time difference of not more
than two hours.
WHY COMPANIES OUTSOURCE?
• 59% of companies outsource to reduce or control costs.
• 57% do it to focus on business objectives.
• 31% to improve service quality
• 28% to take help from talented professionals
• 17% to manage their business environment
ADVANTAGES
• Expertise: sometimes an overseas vendor/business has special equipment
and/or technical expertise, making them better at the given task than
employees within the outsourcing organization.
• Reduced costs: a big draw to outsourcing work overseas is reduced costs for
labor, operations, and even equipment.
• You Get Peace of Mind: At the end of the day, choosing to outsource with a
reliable individual or agency should give you peace of mind that tasks are
being handled expertly and efficiently without you having to worry.
• You Can Share Some Risk: One of the most important factors in any project is
risk assessment and analysis. By outsourcing certain campaigns or processes
on to experts in their respective fields, you will benefit from their enhanced
ability to plan and mitigate potential risks.
DISADVANTAGES
• Language/cultural barriers: these can affect both employees and
customers, especially when clear explanations of the problems and solutions
are required.
• Different time zones: this can add as a barrier to communication and
coordination with the hiring company.
• There are Security Risks: In this age of data protection, it’s essential that you
exercise caution whenever using customer data. If you plan to outsource
processes that require personal data, you could be placing the privacy of
others or security of your business at risk by passing that data on to other
people.
• You Reduce Quality Control: Outsourcing companies and some freelancers
may often be motivated by profit rather than a job well done. That means
the work you send out may come back quickly, but will lack the standard
and quality that customers have come to expect from your products or
services.
BIGGEST IT OUTSOURCING COMPANIES

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