Information

Technology
Outsourcing
Information technology
+
outsourcing

IT- information technology is the use of computers and

software to manage information

Outsourcing is the act of transferring some of a company’s

recurring internal activities and decision rights to outside
providers, as set forth in a contract.

IT Outsourcing occurs when an organization contracts a

service provider to perform an IT function instead of
performing the function itself. The service provider could be
a third party or another division or subsidiary of a single
corporate entity.
 INTRODUCTION
(In Brief)

 For a business , It Outsourcing is buying information

technology products and services that could be furnished In-
House from one or a variety of sources on the internet.
 It enables a business to run fast and involves skilled IT labour.
FOR INSTANCE

security firm (VPN)

Web-
hosting
organization ( ASP)

ASP= Application service provider.

VPN= Virtual private network
Benefits of IT Outsourcing

 Operational benefits
 to improve service quality
 Attract and retain competent it personnel
 Develop and maintain robust system
 Achieve business value by transferring service
delivery
 Reduces time to market
 Ready solution outsourcing offers
 Benefits of IT Outsourcing

 Technological benefits
 achieves it efficiency
 provide access to advance technology
 improves quality if it services
 easy access to people, processes and technology
 Benefits of
IT Outsourcing

 Financial benefits
 Control it cost
 Reduces risk of investing in wrong technology
 Limits the required capital investment
 Makes financial resources available.
MAKING AN OUTSOURCING
DECISION

 objectives
 feasibility
 requirement
 selection of service provider
 transition
 steady state
 termination or renewal
 Risks and

Challenges

 Legal
 Great Expectations
 Partners
 Infrastructure
 Communication Transparency
 Culture
 Process Maturity disparity
 High Turnover
 Low Morale – on and offshore
 Detailed Specifications

9
 Mitigating the
risk of it
outsourcing

 establish an it outsourcing strategy.

 maintain in- house it expertise.
 ascertain that the service provider understands the
need of the organisation.
 evaluate the financial and operational well being of
the service provider.
 consider the use of third parties.
 draft an adequate agreement between parties.
Thank you.....

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