Case Study Analysis: Outsourcing IT Tasks in Modern Businesses

This case study examines the outsourcing of IT tasks, focusing on its advantages and disadvantages within the context of a company like Tesco. The paper discusses the factors encouraging ICT outsourcing, such as high costs, time consumption, and low operational efficiency, while highlighting the benefits, including cost reduction, time utilization, skill acquisition, and executive skills. It also delves into the risks and disadvantages, such as quality risks, constant administration issues, discouraging conditions, and security concerns. The analysis provides a comprehensive overview of the strategic implications of IT outsourcing, offering insights into its practical application in modern business environments and the challenges involved in managing outsourced projects effectively.

Running head: Professional Issues in Computing: Outsourcing IT tasks 1
Case study discussion on outsourcing IT tasks
Student Name
Institution

Professional Issues in Computing: Outsourcing IT tasks 2
Introduction
These days, most organizations permit third-party organizations to deal with their IT
services. This activity is viewed as a risky activity, as it decreases the cost and the priorities
given to the expertise given to these organizations. There are also a few disadvantages with
advantages of confronting numerous organizations during outsourcing (Peslak, 2011). In this
article, I will discuss outsourcing of ICT and its advantages and disadvantages in companies like
Tesco.
Outsourcing of ICT is ordinarily utilized as a way to deal with strategic management by
the organization. Access those disadvantages and advantages which can get the practical
utilization of information system in a company like Tesco. Tesco adequately used his assets and
capacities and created competitive contention in the retail business and its rival Sainsbury and
Asda. As a grocery store chain Tesco commands, the UK by keeping costs low, and can possibly
keep the intensity high. Tesco is Britain's best retailer. Its quality is great retail mark names,
client dedication, dependable client, low-cost power, store, Tesco Clubcard’s and so on (Bahli &
Rivard, 2003).
Factors encouraging outsourcing ICT
1.High Cost of running and maintaining frameworks.
2. Consumption of time and labour.
3. Low Operational Efficiency.
Benefits of Outsourcing
Cutting Expenses

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As I said before cutting the cost, the principal factor is that organizations pick to utilize
outsourcing. These expenses for the most part mention some different costs, for example, worker
charges, office space cost, and also some outsourced workforce, since it has ended up being less
expensive contrasted with those originating from developed nations.
Time Utilization
Outsourcing is a broadly known advantage; the time has come to give rapid work to
outsourced work. A great case of the utilization of time in an organization will be the Recruiting
IT employees for the production of another group. Right now outsourcing can be reduced to a
most extreme level.
Skill Acquisition
Another capacity to introduce outsourcing in one organization is that representatives don't
have the similarity. A speciality to fame case in an organization like Tesco happens when
workforce needs to manage another strategy so as to perform best in their divisions. Along these
lines, the sort of outsourcing causes the organization to meet predetermined benefits, which are
lessening both time and cost.
Executive Skills
Because of the way that the workforce is taken care of by outsourcing, people inside an
organization can focus more on their underlying charges and can perform better in their
specializations. This is an essential purpose behind the organization to utilize outsourcing on the
grounds that it stresses workers' capability on their capability but generally on primary business
(Houseman, 2008).
Risk and Disadvantages
Quality hazard

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The utilization of outsourcing is having also some of the disadvantages that can
compromise on the name and reputation of an organization. For instance, if a client has a buy and
it has been identified in this manner that the part of the item paid by him has been harmed, at that
point the organization has been obliged to contact its outsourced provider to replace that part.
But, the organization will dependably bear the responsibility of the harmed item.
Constant administration
It is broadly realized that most organizations have neglected to outsource their projects
these days since they don't have the best possible administration framework. To grow, each
organization must be a high insight director, which will deal particularly with the administration
of outsourced ventures. In such big organization as Tesco, this individual must be completely
qualified to decide the outsourced workforce demands, and it must be guaranteed that every one
of the suppliers is continually refreshed to meet these requests.
Discouraging conditions
These terms mostly indicate representative's knowledge. When we are managing big
organizations, for example, Tesco, there are infrequent issues like barriers of knowledge. For
example, when a call centre is outsourced to a third-party language organization, at that point
there might be some disturbing clients who manage the unwanted correspondence circumstance.
Another strong frustration is the absence of organizational knowledge, where outsourced workers
are not surrounded by a similar commitment or passion for a company, so they generally look
stupid and obscure in the client's eyes. Then again, outsourced providers have received a few
disappointments from their representatives of the organization. This happens when the
information of workforce isn't at the more elevated amount, which is the reason they are blamed
for poor administration of the outsourced provider.

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Security
It is imperative for a client to realize that respect is done, and they can depend on the
organization by giving them individual information. This is the motivation behind why
administration of client's private information ought to dependably be prepared by the
representatives of the organization, not outsourced.

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Bibliography
Bahli, B., & Rivard, S. (2003). The information technology outsourcing risk: a transaction cost
and agency theory-based perspective. Journal of Information Technology, 18(3), 211-221.
Retrieved 7 4, 2018, from http://tandfonline.com/doi/abs/10.1080/0268396032000130214
Houseman, S. N. (2008). Outsourcing and Offshoring: Problems for Price and Productivity
Measurement. Retrieved 7 4, 2018, from http://research.upjohn.org/cgi/viewcontent.cgi?
article=1015&context=confpapers
Peslak, A. R. (2011). Outsourcing and offshore outsourcing of information technology in major
corporations. Management Research Review, 35(1), 14-31. Retrieved 7 4, 2018, from
http://emeraldinsight.com/doi/abs/10.1108/01409171211190788