Weighing the Value, Benefits & True Cost of Outsourcing Information Research Paper

Weighing the Value, Benefits & True Cost of Outsourcing Information Technology - Research Paper Example Information Technology outsourcing is a great way to achieve the organizational objectives in an efficient and cost effective manner. However if practiced properly the benefits of IT outsourcing goes beyond than just mere outsourcing. Outsourcing offer significant business impact that leads to a stable, secure and most importantly a robust business unit that operates like a well oiled machine. The main fundamental of business process outsourcing is to outsource the mundane task to the specialists so that the organization can focus upon the core activities. As a matter of fact that is the very basic root cause of any form of IT outsourcing. However it must also be mentioned that there is another angle to the whole outsourcing saga. As the business landscape gets more and more competitive and the global economy gets unpredictable, a significant effort can be seen on the part of the companies to reduce size of the business units and budgets. Now getting into the shoes of an entrepreneur it is pretty safe to say that it is more likely that the entrepreneur would look to reduce the size of a business department that doesn’t include in the checklist of the core business activities. Such factors are the catalysts behind the rise of outsourcing business. The study has been conducted in lieu of determining the productivity benefits of IT outsourcing and to go beyond the cost effectiveness aspect of IT outsourcing (Delen, 2009. p. 25). A business of any organization irrespective of the size is quite likely to be familiar with recurrent challenges. The chances get even higher in the modern volatile economy. Some of the most familiar challenges include limited budget, shortage of quality manpower, assigning manpower keeping their core competency in mind. To make things harder there is constant need of technology enablement in almost every business department. Whatever be the situation it is pretty needless to say