Abstract
IT outsourcing is an arrangement in which a company subcontracts its information technology related activities to be executed by a different company. In the past several decades, as the role of information technology grew in the performance of a company, the fixed cost of maintaining up and running IT facilities and staffs was increasing as well. Therefore outsourcing solution was derived from companies' need to achieve superior performance of IT functions with minimum amount of cost. Major classifications of IT functions that companies outsource are infrastructure and applications. Infrastructure outsourcing refers to a company resolving its entire IT activities handled by a contracted vendor company on the company's behalf. Application outsourcing stands for a company subcontracting only its core IT applications such as ERP systems, document management systems or Business intelligence applications with service provider. Though the IT Outsourcing process might be a useful activity for the growth and resources of a service provider's organization but at the same time it has some issues with multiple implications that need to be analyzed in detail. In this paper we take a look at IT Outsourcing process and analytically evaluate its effects on future growth of an organization.
Highlights
Outsourcing denotes a business practice in which organizations contract other specialists or companies to get part of their works accomplished
The different options of Information Technology (IT) outsourcing sought depend on the abilities of an organization, needs and managerial decisions based on the situation evident within each organization, but definitely the results differ and the success of each method differ depending on the ground conditions
This information is an important indicator of IS services and is helpful to the organization because it helps the organization to learn about what clients think about the services and goods provided by an organization
Summary
Outsourcing denotes a business practice in which organizations contract other specialists or companies to get part of their works accomplished. Business process outsourcing entails offering a third-party the role of running particular business processes for example, payroll related tasks or purchases. According to Nancy, when outsourcing gained popularity in the early 90’s, it mainly entailed the development of software at a cheaper rate in locations that offered low-cost services. Information technology outsourcing denotes the process of transferring decisions rights or property rights in different degrees over IT infrastructure development and use by the user-organization to an external organization. IT outsourcing is not a very new feature in the business world and its onset can be traced back to the 70s and 60s when the purchase of computer time sharing started These initial forms of outsourcing were mainly for companies that did not have IT in infrastructure, but it is common for even big firms with comprehensive structural set ups to outsource their IT functions. The different options of IT outsourcing sought depend on the abilities of an organization, needs and managerial decisions based on the situation evident within each organization, but definitely the results differ and the success of each method differ depending on the ground conditions
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