MITS4001 Business Information Systems: Outsourcing Report - July 2018

This report, prepared for the MITS4001 Business Information Systems course, examines the multifaceted aspects of Information System (IS) outsourcing. The report begins by highlighting the increasing trend of IS outsourcing in the IT industry, driven by the need for flexibility and efficiency. It discusses the advantages, such as access to expert technical support, focus on core business processes, and reduced operational costs. The report then delves into the challenges associated with IS outsourcing, including potential risks to data confidentiality and the emergence of hidden costs. The content is based on a literature survey, providing a comprehensive analysis of the benefits and drawbacks of IS outsourcing, supported by relevant references. The report also includes an abstract in IEEE format and a video presentation, as required by the assignment brief.

Outsourcing in IT
Industry
Benefits and Challenges

 Outsourcing has become a trend for the IT
industry.
 Many of the organizations are using the IT
outsourcing for maintaining the flexibility in
the business.
 Outsourcing in the information technology is
the trending concept in the organization
where the two organizations exchanges the
workload.
Introduction

 Expert technical support and swiftness
 Focus on the core process of the
organization
 Sharing of the risks
 Reduction of the operational and
recruitment cost
Advantages

 It has been seen that most of the tasks are
outsourced to the vendors who are experts
in that respective filed.
 In that case, it can be expected that the IT
solution that can be achieved from the third
party organization will be in excellent
quality.
Expert Technical Support and
Swiftness

 the service based organization works
related to the technical supports or the
other supporting technology are outsourced
to the third party organization.
 In that case, the client organization can
able to focus on the main functions of the
organization rather than focusing of the
solution for the supportive technical
problems.
Focus on The Core Process of
The Organization

 Exposing of the confidential data
 Synchronization between the objects
 Hidden cost
 Focus of the consumers
Challanges

 [1] Gewald, H. and Dibbern, J., 2018. Risks and benefits of
business process outsourcing: A study of transaction
services in the German banking industry. Information &
Management, 46(4), pp.249-257.
 [2] Lankford, W.M. and Parsa, F., 2016. Outsourcing: a
primer. Management Decision, 37(4), pp.310-316.
 [3] Dinu, A.M., 2015. The risks and benefits of
outsourcing. Knowledge Horizons. Economics, 7(2), p.103.
 [4] Lai, Y.H., 2016, August. The factors affecting
partnership quality of hospital information systems
outsourcing of PACS. In International Conference on
Industrial, Engineering and Other Applications of Applied
Intelligent Systems (pp. 484-492). Springer, Cham.
References

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