The Outsourcing Dilemma Essay example - 1929 Words

The Outsourcing Dilemma CIS Strategic Planning Introduction To outsource or not to outsource, that is the question. It is indeed a question that a CIO, CEO, or IT manager is likely to encounter. It is not a simple question, nor is the answer simple, and there is not a one size fits all solution. As with any decision, it is good to face it with facts and without prejudice. This work shall discuss factors that help determine the answer, risks, benefits, cost analysis, and implications to the business. Prevalence of outsourcing How prevalent is outsourcing of IT function? Is it true that outsourcing in US companies primarily sends work to foreign countries? According to a Culpepper Compensation and Benefit Survey of 68 science and†¦show more content†¦The traditional relationship would suit the client that knows exactly what the solution will look like and do, whereas the partnership relationship would suit the client that only knows the functionality that is needed but does not know how the solution would look. The options being offered are constantly changing as outsourcing providers attempt to predict the needs of future clients and respond to needs of present clients. Outsourcing is a broad topic and this work will address it in a general rather than a specific manner, differentiating only where the options are completely distinct. Strategic implications At the surface, it may appear that outsourcing would limit the control that the company would have over the IT function and resources, but is that really so? This question begs another one. Does the company have control now, or is the IT function already out of control? Can the company devote the kind of resource necessary to manage its own IT resources? Is it strategically a sound decision to have a department in the company that specializes in IT support, or would it be better to obtain service from a company that specializes in IT support? One thing is clear, a company must focus on its strategic mission. It cannot be fragmented from that mission by other areas of focus. This type of focus can happen with internal IT support if the IT department can perceive ownership of the company strategicShow MoreRelatedCross-Cultural Perspectives: Evaluating the Ethical and Social Responsibility of Software Outsourcing at Oracle1116 Words   |  4 PagesEvaluating the Ethical and Social Resp onsibility of Software Outsourcing at Oracle Introduction The ethicacy and social responsibility involved with the development of an effective software outsourcing strategy is a dilemma many American software companies are facing today. 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Situation Background (Step 1) The telecommunications industry is becoming more competitive as cable companiesRead MoreEthical Issue And The Ethical Dilemma882 Words   |  4 PagesLeadership Ethics Introduction In this week’s assignment, we have been asked to identify an ethical issue presented in the Devise Products Unlimited (DPU) case study. First we will discuss the issue and the ethical dilemma it creates. Next we will look at possible recommendations for the DPU CEO to handle this issue. The Ethical Issue First, let’s start by looking at what the ethical issue that DPU is facing. The issue that I have chosen to focus on is issue two from the case study:Read MoreMGMT 310 Unit 3 IP1098 Words   |  5 Pagesï » ¿ Unit 3 – Outsourcing American InterContinental University Abstract While faced with competitive markets and globalization, companies are always looking for ways to improve their overall cost and pricing structure. 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It has changed the way we operate computers and through its software, has made the computer user-friendly and very efficient. Microsoft, however, does not want to only specialize in the software department. They have thus expanded their excellence in other departments such as gaming, music and hardware. Problem When Microsoft entered the video