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Essay / Research Paper Abstract
This 50 page paper examines outsourcing and its implications for the information technology sector. The paper starts by defining outsourcing and then looking at the motives underpinning the reason why it occurs. The paper then looks at how this should occur in reality an how outsourcing should support, directly or indirectly, any competitive advantages of the company and fit in with the value chain. The paper then looks at a case study which shows how outsourcing can fail when the theories identified in paper are not put into practice. The paper ends with a consultation. The bibliography cites 50 sources.
Page Count:
50 pages (~225 words per page)
File: TS14_TEIToutso.rtf
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Unformatted sample text from the term paper:
3.2 Agency Theory 11 3.3 Porters Market Theory 13 3.4 Core Competencies 15 4. DEVELOPMENT OF THE PRACTICE 16 4.1 Supporting Competitive Advantage 17 4.2 Outsourcing and The Value Chain 20 4.3 The Human Aspects 30 5. IMPLICATIONS FOR THE IT SECTOR 39 5.1 Case Study 40 6. CONCLUSION 51
REFERENCES 52 1. Introduction Outsourcing has been seen to increase in recent years in many areas from healthcare and government to IT and engineering. The commercial pressures on any organisation,
both public and private, are severe, the pressures include the need to save in terms of costs or add value into the processes of the value chain. For commercial enterprises
there are also the needs to create and sustain competitive advantages, whilst outsourcing may not be the source of this due to the availability and replicable of this services it
may facilitate the pursuance of advantages such as cost or differentiation. For public companies that are issues of public accountability for the way in which funds are used. Outsourcing
has been seen as a way of helping this aims to be achieved, but the ability for the potential of outsourcing and the perceived advantages such as lower costs ad
the transfer of some risk for the activities are not always realised. There are many anecdotal stories of outsourcing failing to produce results, the National Health Service in the UK
has outsourced many services to a high level of criticism as has the London Ambulance service for the dispatch systems. However, there are also many examples where outsourcing has saved
a great deal of money and realised many benefits, for example CompUSA and British Airways outsourcing their distribution and IT solutions respectively. There is little doubt that outsourcing has
potential, but this potential is difficult to realise and can have long lasting effects, especially where there is the outsourcing of IT. The outsourcing may be to local companies or
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