Problem Statement

Problem Statement

Student 's Name

Course Code , Semester , Class

Tutor

13 July 2010

Problem Statement

Problem Background

The business environment is changing due to influence from external factors such as changes in customers ' preferences . The changes have led to increased pressures on businesses to improve their performance and gain competitive advantage . Firms are currently under increased pressure to continually review their operations with the aim of addressing threats emanating from changes in the external environment and harnessing the opportunities (Mani , Barua Whinston , 2010 Innovation , creativity and

creation of synergies in operations are highly emphasized as businesses try to improve their positioning in the market (Mani , Barua Whinston , 2010 . In this complex operational environment , outsourcing IT processes has come up as one of the avenues that businesses can use to improve their operations

Information processes within a functional firm define the levels of organization and coordination that can be attained . Poorly coordinated information processes affect interaction between different entities that are responsible for value generation in an organization (Guy Hill 2007 . Outsourcing such processes to professional companies that have adequate professional knowledge and experience may improve overall operational efficiency (Guy Hill , 2007 . However , such improvements depend on the levels of professionalism displayed by the third party entity . This clearly emphasizes the need to spend considerable expertise , finances and time in choosing an entity that a business will outsource its IT processes to (Mani , Barua Whinston , 2010 . Choosing the processes that will be outsourced is equally important . Outsourcing like any strategic endeavor...