IT Outsourcing

Paper Summary:

The paper discusses how many companies are lowering their costs by using offshore outsourced resources on a project-by-project basis. The paper explains that companies who are getting the best results from outsourcing are following three major strategies: saving money without impacting strategic direction, accessing specific skill sets of the outsourcers and selectively hiring the talent needed on a per-project basis. The paper provides a summary of the advantages and disadvantages of outsourcing.

Outline:
Executive Summary
How Companies Are Making IT Outsourcing Work
Advantages and Disadvantages of Outsourcing

From the Paper:

"All companies are asking their IT departments to reduce IT costs and head count, and this is hitting IT departments the hardest. Yet as the research in this paper shows, the majority of jobs being outsourced are those that deal with repetitive, mundane and easily replaceable processes. These areas of any company are ripe with cost reduction strategies. The Draconian notion of trimming all IT costs is unrealistic; rather the focus on fine-tuning strategic benefits is critical. These mundane and easily automated (and therefore outsourced) tasks account for 19% of the IT budget by many industry sources, making them an attractive target for cost savings."

Sample of Sources Used:

• AMR Research (2003) - Offshore Outsourcing: Is It A Viable Approach for All Projects? Authors Laura Carrillo, Kathia Desronvil, Colleen Niven. AMR Research, Boston, MA. June 30, 2002
• Travis & Meunier (2004) - Successful Outsourcing Work Offshore Is In Your Hands. October, 2004 AMR Research, Boston MA
• Travis (2003) - Best Practices in Managing Outsourcing Relationships. AMR Research, Boston, MA. June 24, 2003
• Economist (2006) - Virtual Champions, article from The Economist Magazine. June 1, 2006 print and online editions. Page 26.

More papers on IT Outsourcing:

• Research Paper # 96954 : "IT Outsourcing"
• Comparison Essay # 5777 : "The Current Practices of IT Outsourcing"
• Term Paper # 96625 : "IT Outsourcing"

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