IT Outsourcing: Advantages, Risks, and Mitigation Strategies

MITS4001 Business Information Systems
Abstract
The outsourcing refers to the hiring of an outside with independent firm to perform a business
function for the internal employees. The organization outsource the jobs mainly to the
specialized service companies with operations that are set to continue with the wave of impact on
information technology field. IT outsourcing includes the data center operations with desktop
and helping desk support, with software development, with outsourcing e-commerce. The
advantages of the outsourcing of IT works on allowing management to detail a specialized
company with removing details and permitting the management to focus on larger issues in
organization [1]. The specialized company works on handling outsourcing of IT work that tends
to boast technological capabilities. The organization views the outsourcing which is cost
effective with means to expand into countries and new marketing standards as well. The
problems are related to reducing and eradicating the direct communication in between the
organization and clients. The limited communication includes the impedance of building process
that leads to overall dissatisfaction of organization and client [2]. The problems are related to
loss of complete control in the country where the project implementation timelines also tend to
suffer. The organization terminates the agreement with outsourcing the entity, confidentiality and
sensitive information that tends to become jeopardized. The outsourcing of IS functions include
focusing of own business strategies with increased business efficiency. The risks of IT
outsourcing includes IT services that runs a risks related to receiving the poor quality of work.
The offshore sites tend to experience a high employee turnover which will capitalize on
organizational limited capabilities. It leads to the high-quality service which involves the hidden
costs, like travel expenses and then creating an infrastructure to manage operations [3]. The