Outsourcing IT functions. This paper gives both the pros and cons of Outsourcing IT functions

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Outsourcing IT Functions

IT outsourcing can be a one stop IT solution for companies providing IT Enabled services. Providing high quality, time bound, cost effective services. Typical services can include:

*Data Entry

*Forms Processing

*Back Office Operations

*Insurance Claims Processing

*Medical Transcription

*Data Conversion

*Scanning, Image Editing, OCR, ICR, OMR services

*Web-Designing, Web Promotion

*Call Center

These services are usually determined a need in a business when companies decide that it would be more cost effective for them us an outsourced company, reducing capital infrastructure costs. Outsourcing allows the company to focus on core business only. Also improving employee satisfaction with higher value addition jobs and making the best use of competitive resources available worldwide. Using an outsourced company would give you the same standard hardware and software platforms available worldwide. And should be high speed and have a low cost of Telecommunications, making the Internet the global communication medium and allowing on line data processing possible from any location.

Today, the greatest risk in outsourcing is to not outsource. So says James Brian Quinn, William and Josephine Buchanan Professor of Management emeritus at Tuck School of Business at Dartmouth in Hanover, New Hampshire. "Without outsourcing, companies can't keep up," observes Quinn.

The second biggest risk today is to keep innovation in-house, continues the professor. He calls the idea of assigning all corporate innovation in-house "a macho shibboleth." Today, the most successful companies use outsourcing for innovation. He cites Dell Computer and Cisco Systems as leaders in their fields who rely on their suppliers to do the development work.

Dell, for example, concentrates "on the few things it does best in the world" and outsource the rest. Dell's core competency is a responsive customer support system; the company relies on its upstream suppliers to do everything else. "Dell is...