Outsourcing

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Term Paper Title	Outsourcing
# of Words	2225
# of Pages (250 words per page double spaced)	8.9

Outsourcing

Outsourcing

Contents.

     1    Abstract
     2    Introduction
     3    Fundamentals
     4    The Main Strategy
     5    Sucessful Outsourcing
     6    Conclusion

Outsourcing and how it can help IT Managers enhance their projects.

Abstract

With computer systems / projects and there implementations getting more complex
with every day that passes , the tendering of IT responsibilities to external
parties is becoming more and more attractive to the IT Managers of large
organisations. The common name for this type of operation is "Outsourcing". It
is the attempt of this paper to explain outsourcing , it's pro's and con's and
how it can help our friendly IT Manager enhance developments or implementations.

Introduction

Outsourcing can be defined as a contract service agreement in which an
organisation hires out  all or part of its IT responsibilities to an external
company.

More and more companies are leaning towards outsourcing it could be said that
this may be caused by the growing complexity of IT and the changing business
needs of an organisation. As a result, an organisation may find that it is not
possible to have all its IT services supplied from within its own company. Given
this, an IT manager may decide to choose to seek assistance from an external
contractor/company to supply their services the organisation lacks. In addition,
the business competition has set the pace for an organisation to continue to
strive for internal efficiency. It also needs to look for a way to transfer non-
core activities or "in house" services and support activities to external
specialist organisations who can deliver quality services at a lower cost.

Fundamentals

In deciding whether to use outsourcing or not, the main objective of outsourcing
is based on the price of delivery of services by an external contractor/company.
Although price of delivery is a primary factor for outsourcing, other issues
should be considered e.g. price should be measured against the overall package
offered  by the external contractor/company.  Briefly if it's a good competitive
price in relation to the services rendered by the company and in respect to
their skills/competency and experience, and timely delivery. The organisation
also needs to consider outsourcing in light of its long term strategic
directions and its information needs.

Competition is a another area to be carefully considered. Competition opens up
opportunity for all potential suppliers to conduct busin...

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