IT/IS outsourcing in business information technology
Introduction
Information technology and systems (IT/IS) are rapidly becoming the backbone of various businesses and enterprises. In reality, the two are synonymous and work hand in hand with each other. Information technology is the use of computers, storage devices, networking equipment and infrastructure to generate, develop, store, protect and interchange all forms of electronic data. Information technology is classified under the information systems umbrella. Its primary focus is to manage technology and improve utilization to advance the general business goals.
Information systems is an overall term that describes methods, people, and processes that are designed to construct, store, influence, and distribute information. The information systems field bonds business and computer science. Most people have a problem differentiating between IS and IT because they take an assumption that all information systems are computer-based. Despite the fact information systems are highly dependent on computers and technology-based tools; they can also include other non-technological systems. This paper seeks to identify and discuss information technology and information systems outsourcing in business information technology. It offers a roadmap to the advantages and disadvantages of IT and IS outsourcing by focusing on the operation, management and development of information system and information technology outsourcing practices.
The outsourcing of IT/IS services is seen by many companies as an instrument for accomplishing strategic objectives. The outsourcing process is very complex, and it includes considering not only the benefits but also assessing the risks inherent while making decisions in the course of this process (Costa and Gusmão). When planning to outsource services, corporations are challenged with making a choice of different projects, contract situations, and suppliers. Arriving at appropriate decisions is critical to realizing the preferred goals. We now explore the advantages and disadvantages of IT/IS outsourcing.
Access to world-class specialists and expertise
The nature of specialization in IT/IS outsourcing companies is on another level. They are trained to offer specialized IT services. They bring world class resources so that they can meet their customer’s needs. For example, a particular team is tasked with troubleshooting and resolving network issues and glitches. Outsourcing units are comprised of larger staffs that are tasked with designing, implementing and troubleshooting company’s network solutions on a daily basis. Consequently, the threshold of work quality is higher when IT is outsourced decreasing downtime and system problems. Additionally, outsourcing companies boast of access to the newest technologies and resources due to their place in the industry.
Reduction in operational costs
This is one of the major benefits. It is cheaper to hire personnel from outside the company to offer certain services. With the existence of an internal IT department, systems and networks may operate without requiring maintenance (Winters). The staffs still get paid for virtually doing nothing. However, when outsourcing is done for an external IT contractor, it means that they will only be paid when they are needed. Moreover, the burden of taxes and benefits is placed on the outsourced company doing the IT work. Costs ranging from health insurance and rental charges are reduced.
Provision of high-quality IT/IS services.
There is competition for few IT jobs that are available. This has forced the service providers to give their employees high skilled training to enhance their reputation in the market, which is already bloated with many IT outsourcing, companies. The stiff competition which has been in existence over the last decade has enabled high-quality IT providers to progress into being managing IT services (Winters). The employees are advised to take various industrial IT certifications such as ITIL, Cisco, and Microsoft to meet the client demands.
Reduce risk
Maintaining technology that is essential to run a business is very costly and time-consuming. However, any certified outsourced IT providers work with some clients, and it is necessary for them to keep up the industry best practices, and they know what is right and wrong. This awareness and experience radically lessen your risk of effecting a wrong, costly decision. For example, you opt to hire in-house IT personnel and task him or her with migrating your company website to the server. Unfortunately, the server crashes while the transfer is ongoing. The employee takes hours to fix it, and in the process customers cannot place orders online and you are losing money. With a reputable IT outsourced company, this is unlikely to happen because they have other backup systems.
Access to new resources
Most companies outsource for IT/IS services because they lack access to the necessary resources within. For example, if a company is expanding its operations specifically to a new geographical zone outsourcing is the only viable and significant alternative to constructing the needed capability to resume offering routine services.
Overall IT management is enhanced.
An out of control IT functions can be managed better by outsourced services. For example, internal IT staff fails or does not have the required technical know how to handle a new technology that has been introduced in a company. In this case, the best option is to bring in consultants who are conversant with the new technology.
Disadvantages
Time factor
During an emergency, one has to wait for the outsourced IT department to send personnel. Many factors may lead to the emergency being pushed back. This is because you are subjected to the calendar of the outsourced company. There coming to sort the issue only depends on them. If your IT staff were in-house, the emergency would be sorted immediately.
Familiarity with network and systems
In-house IT workers know the network well and have studied how the system works. Perhaps they built it. Therefore, there is the likelihood that in-house employees will run the systems more efficiently and solve dangers as they occur. The outsourced team may also learn the systems, but it will consume much time (Wallen).
Liability
Third parties may become a liability to a company’s information. Security measures must be implemented to protect all business data and systems. You never know when confidential and critical information will be stolen (Wallen). Many things can go wrong is critical information is stolen. Bear in mind that no one is capable of handling company data with care than an in-house employee.
Hidden extra costs
IT/IS outsourcing has hidden costs that most people do not consider. For example, scheduling an emergency appointment for your outsourced IT firm generates additional charges for drive time back and forth (Wallen). Additionally, sometimes an outsourced engineer may not have an idea on how to fix an issue. Are you prepared to pay for his training? Other extra costs come when recommendations from an outsourced company are implemented. With time, you realize that such recommendations were not needed.
Conclusion
Now that we have understood the advantages and disadvantages related with outsourcing the IT/IS function, there is much to contemplate. Whether you decide to outsource or hire internally, one thing is assured, you must be acquainted with how to manage effective working relations with your IT service providers. From experience, they are not the easiest people to comprehend and deal with.
My thoughts in regards to IT/IS outsourcing are clear. After a thorough evaluation, both sides need each other more than ever before. Therefore before an outsource is done both parties must agree on goals and objectives of the IT project, a new hire or vendor must be selected through research and references, and information must be disseminated to all affected individuals and groups promptly. With this, the IT/IS outsource will thrive with minimal interruptions.
Work cited
Costa, Ana, and Ana Gusmão. Evaluation of it/is outsourcing projects using the dea methodology. 1st ed. 2012. Web. 17 Apr. 2016.
Winters, Carrie. "IT Outsourcing Basics: Pros And Cons - Ttrcorp". TTRcorp. N.p., 2012. Web. 17 Apr. 2016.
Wallen, Jack. "10 Problems With Outsourcing IT - Techrepublic". TechRepublic. N.p., 2012. Web. 17 Apr. 2016.
