In this paper IT related outsourcing shall be dealt with in relation to various pros and cons that it has on a big company.
Proponents of this mode of operations have put forth quite a number of the advantages that befall a major company. They have argued that for contemporary management the question should not be on whether to outsource or not but how much to outsource as IT related functions are many and some may pose huge challenge or more security risk than others. The following are some of the major advantages that a major company will face:
A large company’s IT department is usually huge and having many projects to run. At times these departments are regarded as contributing to the organisation less than they consume. Huge IT departments are cumbersome to operate and outsourcing will ensure that the company is able to operate in a better way than before as argued by Frank (2009). Outsourcing firms also offer consultancy on how to best handle internal controls and in this case in relation to IT related operations thereby in the end ensuring that the company is in a better position to control its IT functions.
Outsourcing in many cases acts as a cost cutting measure and with the current trend for many large companies to go the downsizing way, it has become a popular avenue. Outsourcing leads to a company needing less staff, less space and time says Tho (2005). This in totality brings efficiency in the general operations of the company. A large firm will most likely refer its IT functions to a highly competent vendor thereby ensuring high quality IT services. This high quality is coupled with lower costs as bulk contracts attract better contractual deals.
The IT sector is one that is quite volatile and as time passes new technologies emerge. These advancements at times can be quite rapid that the company may not be in a position to adopt it as fast. This may be related to financial constrains or