Outsourcing technical support services has become increasingly popular. Outsourcing refers to hiring independent firms or contractors to fulfill a business function. Some companies select domestic companies, others choose abroad.
Advantages of Outsourcing IT
Outsourcing allows several distinct advantages. First, it contributes to organizational efficiency by taking away extraneous tasks and focusing human resources on more important work.
Typically, the company that is outsourced to is specialized in one or more capacities, often superior to the original organization.
Other benefits of an organization is that is a cost-effective means to expand into other countries and into new markets.
Disadvantages of Outsourcing IT
Outsourcing IT reduces or completely eradicated direct communication between organizations and clients. Also, outsourcing to foreign countries can involve costly travel or infrastructural concerns.
Project management could also become more difficult at the outsourcing organization loses all control over areas of the company.
Risks of IT Outsourcing
Organizations that outsource IT services run a risk of getting lower quality work. Offshore outsourcing sites can be particularly liable to poor quality – having little regulatory oversight or limited technological capabilities.
Mitigating risk requires that the organization recognize cultural similarities between itself and the specialized firm. Working relationships demand trust and geographic proximity; similarities may be found in historical context or a shared language.
According to IT business expert Colette Meehan, “…Cost continues to be a major issue for companies and as such organizations look to ensure the value of their investment. Technology and software employment may continue to decrease even after the economy improves. Global service providers aim to capture a large share of IT work and service.”
Outsourcing continues to be a consistent theme in the American business environment, as government-based reforms stand to increase future IT spending by organizations.