Benefits and Challenges of Information System Outsourcing

Running head: INFORMATION SYSTEM OUTSOURCING
INFORMATION SYSTEM OUTSOURCING
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INFORMATION SYSTEM OUTSOURCING1
Abstract
The main aim of study is to describe all the benefits of information system outsourcing as
well as all the different challenges which are seen to be mostly associated with the outsourcing.
Outsourcing services of IT is seen to be becoming very much easier as well as much more
rewarding as all the vendors belonging the third party are now seen to be offering a large number
of services which are very much scalable for all the requirements of the company without any
massive investments in the infrastructure. Centers of data can be taken as an example which has
the capability of offering computing of cloud, convergence and also several technologies of
hyper convergence, analytics of database, recovery plans for disaster and some other services
which are very much valuable. All of these services will be giving all the companies which are
mainly small as well as the medium sized with the capability of competing with all of the larger
companies. All of these services of the third party will be also providing all the large companies
with several resources and planning which will be strategic. There are a huge number of risks as
well as several concerns about any provider belonging to the third party. A starting risks mainly
makes sure about working with the right company which is the one offering with several services
of IT which the company actually requires. All other concerns will be involving a lack of control
which will be a direct one of the information technology, the data center location or some other
provider of service and also a huge range of several activities which the vendor which is outside
can be offering really. The study will be comprising all of the risks or the challenges and also the
benefits of the outsourcing information system.

INFORMATION SYSTEM OUTSOURCING2
Introduction
Due to the faster growth in all the advancements in technology in the last few decades, it
has been observed that Information Technology and Systems are becoming a driving engine of
several modern organizations. It has also been noticed that within some of the last few decades,
outsourcing of information system has become a commonplace [1]. The outsourcing of
information system is basically a practice to turn over only a part or rather all of the IS
functionalities of the organization to all the providers of service which are external. Using all the
functions of information outsourcing, a number of organizations will be able to focus on all the
strategies of business and increment the efficiency of the business. It has been observed that
there are a number of benefits as well as huge number of challenges which are seen to be
associated with IS outsourcing.
Benefits of outsourcing
All the main advantages of utilizing IS outsourcing are:
Scalability- Most of the companies which are mainly in-house often plans for all of their needs
of information technology as well as several factors in a very little factor of growth [2].
Whenever any particular company is seen to be growing, there remains a huge number of
problems which are to be addressed. All full new software, servers as well as devices of storage
will be required among some other concerns of information technology. Full new networks may
be needed and all of the new systems are needed to be very much compatible with all the recent
systems. All of the new data are very much required for meshing up with all the old data.