Outsourcing IT Functions

Paper Summary:

This paper provides an analysis of the potential effect that outsourcing would have on the IT functions in the information systems area of an online business. The paper discusses what factors must be considered in making the decision to outsource or not, the risks and benefits associated with outsourcing the IT function, and typical cost origins in outsourcing agreements. The paper presents some examples of the associated dollar amounts involved. An assessment of the implications of using an outsourced IT department on organizational structures is followed by a summary of the research in the conclusion.

From the Paper:

"Over the last decades, businesses have invested handsomely in communications technology in order to better leverage their revenues. Today, more than ever, having the ability to access important data remotely and to communicate is crucial. Online businesses competing in the modern and increasingly globalized marketplace must focus the abilities on gaining access to information quickly, securely, and reliably. Virtually all online companies must have access to various effective IT functions in order to conduct business, but the time may well come when the demands outweigh the company's ability to provide these services internally."

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