Week9_DueMon_09-03_Expand Facfs-Trends of IT outsourcing

Facts and Trends from Research of IT Outsourcing


IT outsourcing can be a one stop IT solution for companies providing IT Enabled services. These companies provide high quality, time-bound and cost-effective services. Typical services can include:
*Data Entry
*Forms Processing
*Back Office Operations
*Insurance Claims Processing
*Medical Transcription
*Data Conversion
*Scanning, Image Editing, OCR, ICR, OMR services
*Web-Designing, Web Promotion
*Call Center

These services are usually determined by a need in a business when it decides that it would be more cost effective to use an outsourced company, reducing capital infrastructure costs.

Outsourcing allows the company to focus on core business only, thus improving employee satisfaction with higher value addition jobs and making the best use of competitive resources available worldwide.

Using an outsourced company would give you the same standard hardware and software platforms available worldwide and would be high speed and would have a low cost of Telecommunications, making the Internet the global communication medium and allowing on line data processing possible from any location. (Casale 2001)


Today, companies have to dip into the knowledge bases of their suppliers to innovate customers. Buyers must have input at the formative stages of a supplier's new strategy. Buyers only have the power to change things while the ideas are still nascent. (Godwin 2000)

Outsourcing can be very beneficial to a company especially if the business manager takes a hard look at the core competencies. If the manager can revisit the areas of the company that aren't directly involved in those competencies, consider whether outsourcing can enable the manager to spin off those tasks and let another company take over the management responsibilities for that work or use modern communication technology to work closely with the people - now partners instead of employees are doing the work.


References

Casale, Frank J.; (2001); Important factors for successful outsourcing Founder and CEO The Outsourcing Institute. October 2001
Godwin, (2000) Article: Vendors' ERP Outsourcing Picks Up and Takes Off by Information Week, CIO magazine, Financial Times of London, InfoWorld, The Economist, and Fortune