IT Outsourcing – Outsource for Competitive Advantage
IT is a major source of opportunity for business and a fundamental tool for any organisation in meeting the demands of its customers in such a challenging marketplace.
IT departments are under increasing pressure to meet the many, often conflicting, demands of boards of directors, shareholders, end-users and competitors, to name but a few and the current economic climate is also putting companies under increasing pressure to find new ways of cutting costs.
These drivers for more efficient and responsive IT have thrown into focus the need to secure solutions that are not only efficient and responsive, but also allow a more effective and competitive use of resources.
As a result, organizations are increasingly considering the outsourcing of their information systems activities as an attractive option. In fact, many organizations already use outsourcing in one form or another.
The attraction of outsourcing IT is that it enables a company to obtain an efficient and responsive IT system, while at the same time allowing the company to focus on its core strengths. IT outsourcing can also provide many benefits for your organisation:
Improved cost management controls
IT costs become more visible and outsourced services are utilized as needed. Therefore organizations pay only for what services are actually used
Improved service quality
Outsourced companies make performance reports and measurements available to their clients and communications between business functions improve at all levels and ensure that IT resources are not being misused.
Staffing
Staffing levels can be adapted quickly to client requirements and IT consultants are fully trained on the latest technologies.
Equipment and software tools
Outsourced services use approved lists of reliable vendors, which improves the quality of goods and services received.
However, there are potential drawbacks that your organisation must also consider:
· Less managerial control
· May be more expensive
· Security and confidentiality issues
While outsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcing is a viable option.
IT Governance Publishing Book Recommendations
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This book offers you a guide to the many pitfalls of IT outsourcing. It will provide you with clear criteria for the application of governance principles to the outsourcing process, and thereby enable you to implement IT outsourcing so that it supports your overall business goals. |
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IT outsourcing can provide many benefits for your organisation, including cost savings and improved services. It can thus enable your organisation to operate more efficiently, and potentially make more profit. This book details the issues you need to take into consideration and the steps you need to follow in order to achieve these benefits. |
Associated Organisations
The International Association of Outsourcing Professionals (IAOP) has more than 100,000 members and affiliates worldwide, and is leading the effort to transform the world of business through outsourcing. IAOP Chapters provide a framework for members to collectively focus on professional development, networking and the advancement of outsourcing within specific areas of common interest. Chapters are organized by geography, by industry and by special topic and are chaired by IAOP corporate members.
The National Outsourcing Association (NOA) was established as a not-for-profit organisation over 20 years ago. Its objective is to boost the effectiveness and success of outsourcing, through the promotion of best practice and innovation in the application and development of outsourcing. The NOA is part of the larger umbrella organisation, the European Outsourcing Association.
