Outsoucing IT Department: Situations to Watch Out For Essay

861 Words 4 Pages
There are a number of dangers that companies should contemplate when considering outsourcing their IT departments. Subsequently, the growing trend is for a company to outsource its IT department. Research estimates that outsourcing accounts for nearly 10% of the $536 billion global IT services industry. The trend is expected to continue as some estimates have IT outsourcing growing at 30% annually for the foreseeable future (Fish, K. E., & Seydel, J. 2006). Taking this into consideration, just because it is good for some companies does not make it a good choice for all. There are several concerns that should be considered before a company makes the choice to outsource an IT department. Not all functions of an IT department are …show more content…
This is particularly true when offshoring your IT needs. I think over the last few years we have all experience the frustrations of not being able to understand an individual on a technical support phone call. Is it necessary for your customer to feel comfortable in communicating with your company? Conversely, if it is your employees having to call an IT department that they cannot understand, do you think that will affect their productivity? You bet it will! Making the right decisions in regard to operating philosophies of the company outsourcing can have dramatic affects if it is not understood by the outsourced company. Your company’s expectations of performance and system needs have to be adequately communicated to the outsourced company. Results suggest that both operating philosophies and knowledge acquisition are crucial to the success of IT outsourcing. Evidence also indicates that different aspects of social customs play different roles in the process of IT productivity (Ye, F. 2005). Therefore, one should consider if the outsourcing company has the same social values as the employees or customers. Operating philosophies and social dynamics should never be under estimated. Successful post-contract or service level contract relationships determine whether an IT outsourcing project is fully successful, partially successful or a failure.

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