Cmmt 578 Week 4 Paper Outsourcing
IT Outsourcing Paper
Tavie Clack
CMGT/578
11/03.2014
Dennis Finigan
IT Outsourcing Paper When a company is trying to decide if they should outsource some of their IT functions, there are several areas that they will need to research so that they will make the right decision. A company needs to measure the risks, benefits, and costs of outsourcing, and the company will also need to measure the pros and cons of outsourcing the IT functions.
1. What are the determining factors that may lead to a decision to proceed with outsourcing? There are several factors for a company to outsource their IT department like: cost, quality, global events, resource management, ability to hire/maintain employees, and agility, etc. A company can reduce the cost of their IT department by outsourcing different aspects of their IT needs. However when a company decides to outsource different aspects of their IT department they need to complete extensive research in order to make sure that they are going to receive quality work and that the outsourcing will save the company money. By outsourcing a company can offer their customers access to technical support for their product 24/7. Another …show more content…
Primary Activities, Secondary Activities, and Incremental Costs are some of the costs involved with an outsourcing agreement. For an outsourcing agreement is usually written around the primary activities in the areas that the company is contracting the outsourced company to preform. However, there are a couple of other areas where costs can originate in the outsourcing agreement and they are the secondary activities where the outsourcing company may offer in order to win the contract like billing, customer service, or technical support. Finally, the last area where costs can originate are called the incremental costs which are when cost increase or decrease because of the rise or fall of
Tavie Clack
CMGT/578
11/03.2014
Dennis Finigan
IT Outsourcing Paper When a company is trying to decide if they should outsource some of their IT functions, there are several areas that they will need to research so that they will make the right decision. A company needs to measure the risks, benefits, and costs of outsourcing, and the company will also need to measure the pros and cons of outsourcing the IT functions.
1. What are the determining factors that may lead to a decision to proceed with outsourcing? There are several factors for a company to outsource their IT department like: cost, quality, global events, resource management, ability to hire/maintain employees, and agility, etc. A company can reduce the cost of their IT department by outsourcing different aspects of their IT needs. However when a company decides to outsource different aspects of their IT department they need to complete extensive research in order to make sure that they are going to receive quality work and that the outsourcing will save the company money. By outsourcing a company can offer their customers access to technical support for their product 24/7. Another …show more content…
Primary Activities, Secondary Activities, and Incremental Costs are some of the costs involved with an outsourcing agreement. For an outsourcing agreement is usually written around the primary activities in the areas that the company is contracting the outsourced company to preform. However, there are a couple of other areas where costs can originate in the outsourcing agreement and they are the secondary activities where the outsourcing company may offer in order to win the contract like billing, customer service, or technical support. Finally, the last area where costs can originate are called the incremental costs which are when cost increase or decrease because of the rise or fall of