Outsourcing IT cn help with this process, s illustrted by the prolifertion of ppliction service providers (SPs) in the pst five yers. Clerly, the growth of the Internet hs creted forces tht re driving compnies to outsource (Jones, 2000), including highly competitive globl mrkets nd the rise of e-business. These trends compel compnies to reorgnize nd utilize more outsourcing to gin higher e-business cpcity, mke predictble cost forecsts nd cost reductions, ttin well-defined nd consistent service levels, cquire needed skills nd expertise, gin ccess to best prctices, nd focus on core competencies.
The Gol: optiml outsourcing Trditionl outsourcing focuses on chieving higher performnce, greter flexibility, nd reduced costs. Outsourcing IT offers the possibility of imposing control on the process, llows the conversion of fixed costs into vrible costs, cretes the opportunity for incresed profitbility, nd fosters innovtive cpbilities nd expnded flexibility (Quinn, 2000). IT hs been identified s one of the most costly components of business (Brthelemy, 2001), so options for reducing costs re certinly worth considering.
For number of resons, outsourcing IT cnnot be pproched like trditionl mke-or-buy decisions. To begin with, IT is not homogeneous becuse it is integrted with wide vriety of systems nd ctivities. ...Show more