Week 5 Identify a Successful prediction of IT to forecast,discuss and analyze

Identifying a "SUCCESSFUL" prediction of IT outsourcing

Outsourcing is the contracting out of a company’s in-house function to a preferred vendor with a high quality level in the particular task area. Outsourcing is one of the fastest growing trends in business. Large- scale organizations (especially for their Internet and Pay-TV divisions) have latched onto outsourcing due to the almost immediate opportunity of savings and quality improvement.

Outsourcing can impact many elements of an organization in a positive or negative manner. Areas such as structure, corporate culture, cost centers and labor have the most tendencies to react to outsourcing developments. Advantages of clearing a structure can give senior management the prospect of re-using and expanding into locations that have been previously outsourced. (Robert A, 2007)


Employees of organizations don’t benefit from outsourcing as they are at a risk with becoming redundant. This occurs as another group outside the organization who have similar skills and competencies that can perform the same tasks replace existing workers. (Straub, 2004)
This treatment of employees can trigger a collapse in confidence and morale from all other employees throughout an organization as they view fellow employees leaving due to job replacements. Therefore in the future lasting employees will feel uncomfortable in an organization that is constantly outsourcing with fears of loosing their job. In order to prevent this morale downgrade management may choose to cross - train redundant employees so they can fit in another suitable position, where it may for expansion or increase labor productivity.
Another aspect that may be impacted by outsourcing is the hierarchical structure. If a certain department is run from outside such as Information Technology, i.e. Hardware and Software is controlled by an outside body, this makes the ‘IT’ division to be removed from the organization and hence its formal structure, hence it will be a doubtful decision to predict about the forecast because things will go beyond your control and your needs may not be identified by an outside body which could affect your business in the long run.




References

Guy Jr., Robert A.; Hill, J. Reginald, 2007, (Information Ages and Technology Management), Vol. 61 Issue 6, p67-72
Ang, Soon; Straub, Detmar W. MIS Quarterly, 2004, Vol. 22 Issue 4, p535-552