Paper Topic:

Outsourcing Information Technology

Outsourcing Information Technology

The follows the evolution that has been taking in the technological and business processes due to the usage of outsourcing techniques . Initially the outsourcing was employed by business to reduce their costs , however now the intensions for the business regarding usage of outsourcing pertain to attaining a strategic advantage . The thesis statement of the states that `Outsourcing is not a new concept but the reasons for outsourcing have changes since its inception . The reasons have shifted from being a tactical solution to the problem to a more strategic

approach towards making the business more profitable and efficient

Introduction to Outsourcing

The process of outsourcing takes place when a business hires or rents parts of its business process to external business / parties which undertake the business processes on their behalf . The phenomenon of outsourcing picked up pace in the 1980s when the larger business were facing cost inefficiently due to their business processes being too complex and not oriented towards technology . As a result they started to outsource the business processes to firm in side their country as well as to offshore locations where the technology for efficiently carrying out the business process was available and the costs for the execution of the process are minimized

The main business processes that are typically outsourced pertain to IT based processes Human Resource based processes , recruitment activities , these which relate to CRM as well as accounting based processes , telemarketing and market research . The main outsourcing locations that have been able to establish themselves over time have been the Asian regions of Bangalore , India , Singapore and China

The Trend for Outsourcing

As mentioned earlier the main reasons to why people started outsourcing and subcontracting their business processes to third party firms and copntractors was due to the cost inefficiencies that they were facing The mismanaged process can render the costs of the process to increase therefore making the company less profitable . As a result the companies started to outsource part of their operations to other companies . Other reasons as to why outsourcing became a trend in the current market pertained to the lack of technical facilities available , as well as the low level of technology orientation in most companies . In other businesses which were specific to recruitment and accounting activities the skilled manpower available to businesses was restricted . As a result in to counter this problem the services of a business process outsource work contracting firm were employed by business . As per the contract for outsourcing , the BPO companies undertake the business processes and provide their clients with the final result of the operations . These results can include records operation based reports as well as a final list of prospective recruits for the company , where the outsourcing activity pertains to recruitment

Now however the process of outsourcing has given rise to new business in the form of media management , human resource management facilities and chartered accountant firms which basically conduct operations pertaining to acquiring business processes of other...

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