It Outsourcing Essay

920 WordsFeb 11, 20134 Pages
IT Outsourcing Paper CMGT/578 Abstract In businesses or corporations, outsourcing a department or function is being used as an alternative and cheaper option to keeping it in-house. This paper will discuss the various aspects of outsourcing the IT function from an organization. Other points that will be discussed include determining factors leading to decisions to outsource or not outsource, the risks associated with outsourcing the IT function, the benefits associated with an outsourcing effort, where the costs in an outsourcing agreement originate, and the implications to the business organizational structure by using an outsourced IT department and personnel issues that may arise. IT Outsourcing Paper Introduction In businesses or corporations, outsourcing a department or function is being used as an alternative and cheaper option to keeping it in-house. This paper will discuss the various aspects of outsourcing the IT function from an organization. Other points that will be discussed include determining factors leading to decisions to outsource or not outsource, the risks associated with outsourcing the IT function, the benefits associated with an outsourcing effort, where the costs in an outsourcing agreement originate, and the implications to the business organizational structure by using an outsourced IT department and personnel issues that may arise. Determining Factors of Outsourcing In order for a company to decide whether or not to proceed with outsourcing the IT function, they must first formulate the company’s vision, mission and value statement. They should consider their objectives when deciding what option to choose for their IT function. Some reasons that a company will decide to outsource their IT function is to save money, because it is difficult to manage or out of

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