IT Outsourcing. Problem Statement. IT & Computer Science Essay (Essay Sample)
Information Technology (IT) has, over the years, transformed from a relatively recognized cost-cutting tool to a critical strategic initiative for organizations that cut across industries and companies. To have a clear comprehension of IT, one is required to get a closer look at how IT has grown over time and the impact that it has on business environments in general. With the current evolution of organizations evolves, managers and shareholders are continually looking for avenues to improve on their organization’s profitability, efficiency, and quality in the services they provide (Lacity & Mary, 1993). In the absence of IT Outsourcing, institutions would have to bare exorbitant installation costs on complex IT systems. Additionally, they would have to employ the skills of highly professional services that would hurt the companies’ profits.
Even though IT Outsourcing is closely associated with numerous merits, it has also been credited with numerous limitations that have reduced its efficiency in flexibility and quality and slowed its adoption in equal measures (Lee & Jae-Nam, 2013). A mix of factors exists that may vary from one institution to the other and are directly either directly or indirectly associated with limitations of IT Outsourcing. First, High costs that are closely associated with employee transition that are involved with manual monitoring, personnel development, and training processes in the initial stages of IT Outsourcing. Secondly, system acquisitions may prove costly as it will involve system acquisition cost and networking.
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