Tech Outsourcing Pros and Cons

Topics: Outsourcing, Offshoring, Offshoring Research Network Pages: 3 (850 words) Published: July 16, 2012
Pros and Cons of Information Technology Offshoring Outsourcing Information Technology (IT) has many advantages and disadvantages. IT Outsourcing is just similar to any other type of overseas development services. Nowadays Offshore Software Development is expanding all over the world. Previously, outsourcing decision was as simple as checking the budget, experience of the service provider and present in-house ability. Outsourcing is a hot button issue for many Americans. There are some that agree it is a good way to save money, and there are some who believe it takes jobs away from Americans. Pros

The following is a list of pros for offshore outsourcing:
1. Better quality, at lower cost in shorter times. Service providers provide qualitative services not at high cost but competitive rates. Asia is known for its service, and this attribute clubbed with qualitative manpower makes Asia, especially India an ideal outsourcing destination. 2. Cost effectiveness Products or services can be purchased at lower costs for consumers. Outsourcing a company’s IT requirements save you as much as 30% of company's expenditure and that says for itself. One can always resort to Offshore Software Development to implement huge projects, which may not be affordable to a company in the western world. Offshoring not only takes care of the development costs but also slashes hiring costs, training costs, and cost of infrastructure to a larger extent. 3. Controls costs by cutting labor costs and therefore maintains profits. (weir, 2009) 4. Companies can concentrate on core activities when they outsource while it offloads its non-core activities to other service providers (Sohail, 2012). 5. Outsourcing can help companies handle overflow situations (Sohail, 2012). 6. Outsourcing is great for providing opportunities that would not normally be available for the people in that country. 7. Opportunities for employees of diverse cultures to learn about other cultures and experience...
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