StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Future of IT Outsourcing - Essay Example

Cite this document
Summary
The essay "Future of IT Outsourcing" focuses on the critical analysis of the major issues in the future of IT outsourcing. Outsourcing is becoming an increasing need in today’s telecommunications industry. Nowadays, businesses are competing at numerous levels…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Future of IT Outsourcing
Read Text Preview

Extract of sample "Future of IT Outsourcing"

? Business Telecommunication Daniel Bushnell of Outsourcing is becoming an increasing need in today’s telecommunications industry. Nowadays, businesses are competing at a number of levels and need to find ways to gain a competitive advantage over their competitors. However, there are many different types of outsourcing that a firm can choose to implement so it is imperative that business managers make a choice that best suits their business. When CEOs are deciding upon what type of outsourcing strategy to pursue, their telecommunications company needs to think of all the advantages and disadvantages. The three main outsourcing options are domestic outsourcing, offshore outsourcing, and mixed outsourcing. I feel that the best choice of these three is domestic outsourcing because there are few disadvantages for telecommunication firms. Outsourcing—the New Economic Answer to a Tattered World Economy How can outsourcing be defined? Well, outsourcing is the process of hiring workers outside your business to carry out the various tasks needed for your business (Baxter, 2011). The telecommunications industry is faced with the issue of outsourcing all the time. These types of businesses need to calculate whether it is economically viable to hire home country staff or outsource the work overseas. In order to determine this, we will review some of the advantages and disadvantages to contracting out work that is normally done from within and by company employees. Some of these reasons include reducing overall costs, scalability, ability to focus on critical business needs, and legal tax benefits. Outsourcing enables a company to access global talent at a fraction of what it would cost to hire an employee (“When is Outsourcing not Outsourcing?” 2004). Because the economy in a shambles, bailouts are running rampant, and the price of gold is going through the roof, many businesses are electing to hold onto their money and not expand the company. Hiring contract workers can be very advantageous because you can help remove legal liability, get the job done faster and cheaper, and fire and or change-out new people/talent at will. There are many different types of outsourcing, but none of them are a fit for all. This paper will discuss different options and will make a business recommendation for CEOs in the telecommunications industry. In general, telecommunication corporations need to reduce overall costs and increase profit margins for shareholders and in an uncertain and confused economy at that. The introduction of Eastman Kodak outsourcing may have cleared-up some of the muddy waters and given business executives some of the incentives they need to take outsourcing to a whole new level (Earl, 1996). As an example, I will use information technology for my outsourcing project because IT outsourcing is a typical make-or-buy decision. Here are some of the positives and negatives of outsourcing shown in the table below: Advantages Disadvantages Flexibility Security Scalability Job displacement Tax incentives Poor customer service Legal liability Culture and language barriers Overall cost reduction Poor quality control Selecting an outsourcing provider is a definite challenge for telecommunication problems. There are many options and none of them will accomplish all your business requirements (“Offshore Outsourcing Models, 2007). This means that tradeoffs are necessary. Here are three options I have chosen for my research paper: A. 1. Option 1: Domestic outsourcing: This is where a company contracts out work to another company that is located within the same country. A.2. Option 2: Offshore outsourcing: Offshore outsourcing occurs when businesses outsource work or even entire departments to foreign countries. A.3. Option 3: Mixed outsourcing (offshore companies with your country’s business presence): This is a mixture of the previous two options where work is contracted overseas but under the supervision of the local company’s business operations (Quinn and Hilmer, 1994). When making a decision on whether or not to outsource work, telecommunications companies need to make sure the workers that they are hiring are qualified for the tasks at hand. My personal opinion and recommendation is that if a firm must outsource, then Option 1 (domestic outsourcing) is the best choice because it contains the most benefits. It has none of the many foreign legal challenges, no customs/language barriers, no customs' delays, fewer security issues, zero negative political issues, positive company image, quicker reaction times to product changes, and no foreign requirements when visiting properties. There will always be risk associated with outsourcing (“Assessing the Risk of IT Outsourcing,” 1998). I think that it is a very complicated issue and can be economically positive or negative depending on how CEOs approach it. I think we need to do this methodically. As such, it needs to be regulated by governments, not businesses. If it is not, then we are feeding a snake that will eventually swallow us whole, but if done properly, we can embellish the world. I think a good start would be to make sure that telecommunications companies outsource to countries that don’t use child labor. Also, CEOs should focus on countries and businesses that develop their nation and not just take from it. One way to do this could be to use a 1:3 ratio and timelines for third world and developed nations. I believe that governments need to work together by coordinating outsourcing. Basically, all we can do is use our business training, cultural experiences, and even gut feeling to make the best business decisions we can. It's not all about money; it's about nations, people, economies, and their environments. Be the best in the world, be fair, and respect other cultures. I feel that the biggest challenge is the knowing and the understanding of cultural, legal, and political dealings of locals. I don't think that telecommunications companies will ever figure this one out. I also think that outsourcing hurts both the local and foreign countries and will only benefit top business executives and CEOs if it is left up to the corporations. These third world countries have the resources and talent to make it on their own. I hope they learn this fact soon and save their culture. There is nothing more beautiful in the world than getting to know and learn from other countries and cultures. References “Assessing the Risk of IT Outsourcing.” (1998). CS Digital Library. Abstract Retrieved June 15, 2011, from http://doi.ieeecomputersociety.org/10.1109/HICSS.1998.654830 Baxter, C. (2011, May 19). What is Outsourcing? Retrieved June, 8, 2011, from http://www.caroline-baxter.com/what-is-outsourcing? Earl, M. J. (1996). The Risks of Outsourcing IT. Retrieved on June 11, 2011, from http://web.ccsu.edu/business/faculty/petkovao/mis498/risks%20of%20outs.pdf “Offshore Outsourcing Models.” (2007). Offshore IT Outsourcing. Retrieved June 17, 2011, from http://offshoreitoutsourcing.com/Pages/outsourcing_models.asp Quinn, J. B & Hilmer, F.G. (1994). Strategic Outsourcing. Sloan Management Review. Retrieved June 20, 2011, from http://www.decon.unipd.it/info/sid/materiale9/bel_eat_letture_ottava_settimana/quinn 1.pdf “When is Outsourcing not Outsourcing?” (2004). Windows IT Pro. Retrieved June 17, 2011, from http://www.windowsitpro.com/article/news2/when-is-outsourcing-not- outsourcing- Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Outsourcing IT Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/other/1429103-outsourcing-it
(Outsourcing IT Essay Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/other/1429103-outsourcing-it.
“Outsourcing IT Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/other/1429103-outsourcing-it.
  • Cited: 0 times

CHECK THESE SAMPLES OF Future of IT Outsourcing

Pharmaceutical Outsourcing Market

The paper "Pharmaceutical outsourcing Market" claims that outsourcing remains a solid force of drug development and pharmaceutical industry growth.... By definition, the term 'outsourcing' means farming out certain work to outside sources that will perform it under contract.... Today outsourcing is known to cover the nearly whole spectrum of pharmaceutical, as well as biotech value chain, starting with services of drug discovery to the production of intermediates, doses, and various pharmaceutical ingredients....
8 Pages (2000 words) Research Paper

Globalization, Outsourcing, Off-shoring, and Offshore Outsourcing Impact on Culture

Analysis of Large-Scale it outsourcing "Failure": What lessons can we learn In Outsourcing and Off shoring in the 21st Century: A Socio-Economic Perspective.... Globalization, outsourcing, off-shoring, and offshore outsourcing have impacted contemporary culture.... Here, we review historical changes from outsourcing to offshore outsourcing; detail how globalization, outsourcing, off-shoring and offshore outsourcing has influenced contemporary culture; and give the modern business person clues to solving the challenge of globalization, outsourcing, off-shoring, and offshore outsourcing. ...
2 Pages (500 words) Essay

Outsourcing-Technology

it outsourcing is not only utilized by the lаrge corporаtions worth billions of dollаrs but аlso by medium-sized business to mаnаge their internаl networks.... This essay "outsourcing-Technology" is about аreа is in а fаst-growing mode due to the complexity аnd necessity of informаtion technology.... outsourcing IT cаn provide mаjor cost аnd time sаving аdvаntаges over а rаnge of projects from smаll things such аs repаir of hаrdwаre or network mаintenаnce to ongoing mаnаgement of аll IT issues for multiple sites аnd users....
10 Pages (2500 words) Essay

Outsourcing Jobs to Foreign Countries

outsourcing of jobs to foreign countries has facilitated faster rate of recuperation from the recession of 2000.... The boom in information technology coupled with expanding internet solutions specially in the fast advancing countries like China and India, opened up avenues for outsourcing at a much lower wages.... outsourcing jobs to foreign countries outsourcing of jobs to foreign countries has facilitated faster rate of recuperation from the recession of 2000....
2 Pages (500 words) Essay

: IT Outsourcing: changing nature of work and its competitive advantage

his dissertation begins with a significant review of it outsourcing and its importance to the different organizations.... Initially, it provides the research by generating an in detail understanding of changes related to planning and employing the initiatives of it outsourcing.... Next, it adds a substantiate content to understand the research context, significance of the employees at different administrative levels, and also the processes by which the administrations plan and employ the activities of it outsourcing....
4 Pages (1000 words) Essay

Advantages of Outsourcing Technology

it outsourcing is not only utilized by the lаrge corporаtions worth billions of dollаrs but аlso by medium-sized business to mаnаge their internаl networks.... The author of the paper states that outsourcing IT can provide major cost and time saving advantages over a range of projects from small things such as repair of hardware or network maintenance to ongoing management of all IT issues for multiple sites and users.... According to the findings, it can, therefore, be said that outsourcing IT is in а fаst-growing mode due to the complexity аnd necessity of informаtion technology....
11 Pages (2750 words) Essay

How Culture Effects JEU Company's Decision to Engage Outsourcing

The study 'How Culture Effects Jordan Electric Utilities' Decision to Engage Outsource Services' concerns decision-making factors for outsourcing at the JEU and defines how the service business is handled at the company.... outsourcing particularly holds importance in the current competitive business environment.... To understand how culture affects decision making in outsourcing at the Jordan Electric Utilities, a qualitative study was undertaken....
28 Pages (7000 words) Research Paper

Global Outsourcing and Offshoring

Generally, the paper "Global outsourcing and Offshoring" is a perfect example of a management report.... Generally, the paper "Global outsourcing and Offshoring" is a perfect example of a management report.... Generally, the paper "Global outsourcing and Offshoring" is a perfect example of a management report.... outsourcing has been a prevalent methodology that has been in practice through which organizational processes and services are outsourced from external organizations with the aim to enable firms with non-core operations, in-house staff, to concentrate on their company's core competencies and strategic objectives....
11 Pages (2750 words) Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us