Information Technology Outsourcing

'Information Technology outsourcing is the contracting out of part or all of an organization's IT activities.' New trends have included operations, programming, and technology planning. The main reason for information technology outsourcing is to gain immediate economic gains for the company, usually through savings. Financial motivations aren't first on businesses minds though; other strategic objectives are.Outsourcing can make of leadership in an organization or the number of hours a worker is expected to work a week. These variables have to be scrutinized by the outsourcing company.

INTRODUCTION Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. REASON TO OUTSOURCE Although the mix of factors raising the possibility of outsourcing varies widely from one company to another, there are a series of themes that explain most of the pressures to outsource.

Outsourcing to India

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First of all, general managers' concerns about cost and quality drive outsourcing. The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly. Second, failure to meet service standards can force management to find other ways of achieving reliability. It is not atypical to find a company in which cumulative IT management neglect eventually culminated in an out-of-control situation the current IT department could not recover from. Management can see outsourcing as a way to fix a broken department. Third, a firm under intense cost or competitive pressures, which does not see IT as its core competence, may find outsourcing a way to delegate time-consuming, messy problems so it can...