Information Technology and Outsourcing

Paper Summary:

A highly competitive global economy makes companies remarkably pragmatic when it comes to both internal business processes and essential business services. They want these jobs done with world-class speed and efficiency, and they want them out of their hair so they can get on with the task of adding value in their fields of expertise. It is for this reason that IT outsourcing continues to grow in dollar volume, scope, and sophistication. The paper shows, however, this is not just an issue of corporate efficiency; it is an issue of misguided corporate greed. The paper shows that the cost savings accrued from the outsourcing of Information Technology overseas is marginal as compared to the long-term damage this trend will have on the national economy, as well as the bottom line of businesses that fail to take into account "the big picture".

From the Paper:

"Outsourcing is not a decision for the short term; rather, it is a commitment that is made for the long-term advantages that outsourcing provides. Over the contract term, the company's business, available technology and the competitive and regulatory environment may change dramatically. The vendor may or may not decide, as a part of running its business, to develop capabilities the company will need in the future. Therefore, this commitment involves great risk regarding loss of control that can potentially traumatize the organization or even the economy as a whole. However the motives for outsourcing can be extensive and persuasive."

More papers on Information Technology and Outsourcing:

• Research Paper # 6408 : "Information Technology Business Process Reengineering"
• Research Paper # 148820 : "Information Technology Outsourcing Risk"
• Research Proposal # 92795 : "Information Technology Outsourcing"

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