The Strategic Role of IT Outsourcing in Enhancing Business Growth

This essay explores the strategic advantages of IT outsourcing for businesses, arguing that it offers long-term benefits despite potential short-term concerns. It contrasts outsourcing with offshoring, highlighting how IT outsourcing can create job opportunities, increase productivity, and drive innovation. The essay acknowledges criticisms of offshoring, such as job displacement and communication challenges, but emphasizes the potential for companies to focus on their core competencies and achieve greater competitiveness through outsourcing. It also touches upon the role of Business Process Outsourcing (BPO) in enhancing sales and profitability, while underscoring that outsourcing enables companies to leverage external expertise and resources for sustained growth and brand image enhancement.

Running head: THE INFORMATION SYSTEM PROFESSIONAL
The information system professional
Name of the Student
Name of the University
Author’s Note

Title: Outsourcing is better than off sourcing IT sources in an organization
Outsourcing deals with involvement of third party in the organization for running and
expanding the business in the outer world. Off sourcing is a technique by which organization
starts its business in different country to avail cost advantages (Oshri, Kotlarsky and Willcocks,
2017). It is true that IT off sourcing helps in long-term benefits for the company in the market.
However, with the increase in the technological importance in the market, outsourcing of IT
services and products have helped in creating more opportunities for companies in the market. IT
off sourcing has been helpful for the security of IT profession in the market. The use of IT
outsourcing has been able to create job opportunities for the people as there is an interference of
third party in the contract.
It is true that IT off sourcing has been creating high innovation and productivity for the
company in the market. IT expert have been getting a lot of opportunities form the outsourcing
of the IT services and products sin the market. The investment done by the company in order to
maintain a proper market capture (Willcocks, Lacity and Sauer, 2017). The use of different
methods in the outsourcing of IT services has been focusing on the productivity of the company
in the market. The outsourcing has been increasing the sales of the companies in the market. The
resources of the company has been maintaining a keen approach to the maintenance of sales of
IT services in the market.
However, with all the strengths of their points in favor of the off sourcing of IT business,
there have been weaknesses in their points. The BPO has been helping in maintaining various
tricks and techniques in order to increase the sales of the company in the market (Tate and Bals,
2017). The outsourcing of the IT department have been maintaining investment in various other
business in the market. The increase in the productivity of the company has been helping in

increasing the profits in the market. The company used to take advantage of other skills of
employees in the companies. The weaknesses of their argument has been identified as the off
sourcing of IT department cannot provided a huge growth in the market within a time being.
However, with the involvement of third party, out sourcing can provide huge profit to the
company. Offshoring is often criticized for transferring jobs to other countries. Other risks
include geopolitical risk, language differences and poor communication etc. Risks of outsourcing
include misaligned interests of clients and vendors, increased reliance on third parties, lack of in-
house knowledge of critical (though not necessarily core) business operations etc. The
outsourcing of the business in the other countries helps in increasing the brand image of the
company in the market (Morschett, Schramm-Klein and Zentes, 2015). The use of various
outlets of the companies have been increasing the sales of the company in the market. This has
been a great approach to the company as the market of the company has been increasing on daily
basis. The use of the outsourcing techniques has been useful for the small companies in the
market. They can take contract from big companies and provide their services on time.

References
Oshri, I., Kotlarsky, J. and Willcocks, L.P., 2015. The Handbook of Global Outsourcing and
Offshoring 3rd Edition. Springer.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Outsourcing and Offshoring.
In Strategic International Management (pp. 361-384). Springer Gabler, Wiesbaden.
Tate, W.L. and Bals, L., 2017. Outsourcing/offshoring insights: going beyond reshoring to
rightshoring. International Journal of Physical Distribution & Logistics Management, 47(2/3),
pp.106-113.
Willcocks, L.P., Lacity, M.C. and Sauer, C. eds., 2017. Outsourcing and Offshoring Business
Services. Springer.