Outsourcing In Today's World Advantage and Disadvantage Outsourcing Research Paper

Outsourcing In Today's World Advantage and Disadvantage Outsourcing Information Technology Department - Research Paper Example This includes the cost of outsourcing, the contract period, impact of outsourcing on the quality of product, internal and external environment that influences the IT firm. There are various benefits attributed to outsourcing. These include cost saving, reduction in the capital expenditure, enable the company to concentrate on the core competencies of the company and improve the quality of the products. This enables the company sustain itself even in a market characterized by stiff competition. Although outsourcing has various benefits to the company it may results in indirect cost, loss of employment, unfavorable contract time and legal problem in the contractual agreement. It may also lead to a decrease in quality of products as the outsourced company may not be committed to their contract. Outsourcing is a crucial element in the operations of an IT company today. Although, it is important it may lead to loss of control as well as create hidden costs for the company. It is thus important for managers to analyze the benefits and risks associated with outsourcing for a service. The growth in the IT industry has been recorded due to the expected benefits associated with outsourcing. This report will seek to elaborate on outsourcing in the IT industry. It will also discuss the factors that motivate a manager to consider outsourcing for a service from a third party. There are several reasons why outsourcing or contracting out work is more favored rather than enhancing in-house talent. This paper is a general synopsis of outsourcing. It surveys when to outsource and what advantages and disadvantages a manager may encounter when determining whether to outsource. However, there is room for improvement in the outsourcing industry. The IT firms should utilize the available information in ensuring that they outsource from reliable companies. With the current growth in the industry, the government