Outsourcing

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Topics: Costs, Cost
Outsourcing

Contents.

1 Abstract 2 Introduction 3 Fundamentals 4 The Main Strategy 5 Successful Outsourcing 6 Conclusion

Outsourcing and how it can help IT Managers enhance their projects.

Abstract

With computer systems / projects and there implementations getting more complex with every day that passes , the tendering of IT responsibilities to external parties is becoming more and more attractive to the IT Managers of large organisations. The common name for this type of operation is "Outsourcing". It is the attempt of this paper to explain outsourcing , it's pro's and con's and how it can help our friendly IT Manager enhance developments or implementations.

Introduction

Outsourcing can be defined as a contract service agreement in which an organisation hires out all or part of its IT responsibilities to an external company. More and more companies are leaning towards outsourcing it could be said that this may be caused by the growing complexity of IT and the changing business needs of an organisation. As a result, an organisation may find that it is not possible to have all its IT services supplied from within its own company. Given this, an IT manager may decide to choose to seek assistance from an external contractor/company to supply their services the organisation lacks. In addition, the business competition has set the pace for an organisation to continue to strive for internal efficiency. It also needs to look for a way to transfer non- core activities or "in house" services and support activities to external specialist organisations who can deliver quality services at a lower cost.

Fundamentals

In deciding whether to use outsourcing or not, the main objective of outsourcing is based on the price of delivery of services by an external contractor/company.
Although price of delivery is a primary factor for outsourcing, other issues should be considered e.g. price should be measured against the overall



References: Although many different books references and web sites were researched the following Instsitute yielded a most comphrehesive supply of information. That ultimately became the basis of this report. The author would strongly recommend any party investigating Outsourcing to contact the below institute. The Outsourcing Institute 45 Rockefeller Plaza, Suite 2000, New York, NY 10111

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