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Essay / Research Paper Abstract
This 15 page paper discusses outsourcing IT functions. While outsourcing is not a new phenomenon, the reasons for outsourcing have changed over the years from an emphasis on cost reduction to more strategic goals. In today's market, major corporations are outsourcing their IT to reduce the costs and enhance the efficiency of IT resources; to improve IT's contribution to company performance within its existing lines of business; and for commercial exploitation. This paper provides a great deal of information about outsourcing, including reasons, effects, and cautions. Examples are included of major corporations who have entered into innovated outsourcing agreements. Bibliography lists 15 sources.
Page Count:
15 pages (~225 words per page)
File: MM12_PGorsc.rtf
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expertise and knowledge on staff to oversee what the outsourcing supplier is doing (Beebe and Meyers, 1998). Outsourcing was not officially recognized as a business strategy to streamline corporations
and increase net profits until the very late 1980s (Beebe and Meyers, 1998). That does not mean this was the first time companies had contracted with other companies to perform
some of the regular functions. That has probably been going on as long as businesses have existed. Small companies have historically contracted with other agencies to do their payrolls or
their entire financial record-keeping. And, companies have relied on other agencies or consultants to find employees for many decades. In other words, any number of support services have been contracted
out for a very long time. Outsourcing as a strategy to cut costs and improve productivity, however, is said to have become into its won in the late 1980s.
Beebe and Meyers report on the stages and phases of outsourcing (1998). These writers say that organizations began by outsourcing those functions that were necessary to run a business but
in which the company had no particular expertise or internal staff to perform those functions (Beebe and Meyers, 1998). "Managers contracted with emerging service companies to deliver accounting, human
resources, data processing, internal mail distribution, security, plant maintenance, and the like as a matter of "good housekeeping" (Alexander & Young, 1996, p. 116). The strategy of outsourcing then progressed
when companies believed they could save money by having other agencies perform specific functions rather than keeping a department staffed with experts in that specific part of the business (Beebe
and Meyers, 1998). Some managers seem to think that if they outsource the IT functions, they will not have to have any IT personnel on the payroll (Beebeand Meyers, 1998).
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