Outsourcing: Benefits, Disadvantages, and References - Analysis Report

This report examines the advantages and disadvantages of outsourcing. It highlights the benefits such as cost reduction, increased efficiency, and reduced security risks. The report also addresses the disadvantages, including potential implementation constraints, third-party interference, and hidden costs. References from various sources such as Laudon, Rivard, Ko, Gilley, and Aubert are cited to support the analysis. The report provides a comprehensive overview of outsourcing, its impacts, and considerations for businesses. It discusses how outsourcing can affect business operations and security, along with potential challenges. The report presents a balanced view, acknowledging both the opportunities and the potential pitfalls of outsourcing strategies.

IS OUTSOURCING

Benefits of IS Outsourcing
The benefits enjoyed are as follows: -
 Reduction in Information System cost
 Reduction in Labor cost

Benefits of IS Outsourcing
The benefits are as follows: -
 Increase in efficiency of business operation
 Increase in focus in business

Benefits of IS Outsourcing
The benefits are as follows: -
 Reduction of security related risks
 Increasing stability

Disadvantages of IS Outsourcing
The disadvantages are as follows: -
 Timeliness implementation constraints.
 Third party interference

Disadvantages of IS Outsourcing
The disadvantages are as follows: -
 Receiving poor service from the third party
 Presence of hidden costs

References
 [1] K.C. Laudon and J.P. Laudon, Management information
system. Pearson Education India, 2016.
 [2] S. Rivard and B.A. Aubert, Information technology
outsourcing: An introduction. In Information Technology
Outsourcing Routledge, 2015, (pp. 15-34).
 [3] D.G. Ko, G. Lee, M. Keil, and W. Xia, Project Control,
Coordination, and Performance in Complex Information
Systems Outsourcing. Journal of Computer Information
Systems, 2019, (pp.1-11).
 [4] K.M. Gilley, A.A. Rasheed and H. Al-Shammari. Research on
outsourcing: Theoretical perspectives and empirical evidence.
In Global outsourcing strategies, 2016 (pp. 41-56). Routledge.
 [5] B.A. Aubert, J.F. Houde, S. Rivard and M. Patry,
Determinants of contract completeness for information
technology outsourcing. Information Technology and
Management, 2017 18(4), pp.277-292.