ABSTRACTOffshore outsourcing has advancen vertiginously in recent years. The nature of offshoring is changing signifi posttly, and the strategies and options that organisations can pursue argon becoming more diverse and varied. It is get to be perceived more than just a needful organisational resource acquisition venture. This essay describes some of the key themes and issues in relation with onshore outsourcing. It critically evaluates the use of, and the issues related to offshore outsourcing; and the main reasons which make firms to adopt Information Technology Outsourcing. It every bit analyses the potential risks and benefits that IS clients are facing while adopting offshore outsourcing. Additionally, examples are used to support and reflect upon the risks and benefits mentioned in the essay. Finally, conclusion suggests that the hunt of offshore outsourcing must(prenominal) be widened and that the offshoring cannot be exclusively make based upon cost savings; other potential risks must also be taken into consideration.
Keywords: Outsourcing, Offshore Outsourcing, Information Technology, Risks and Benefits.
admission?Outsourcing, a management practice strongly consolidated within the area of Information Systems, is currently going through a stage of unstoppable growth.? (Gonzalez, Gasco & Llopis, 2008) An extensive range of position and figures confirms the status of Information Technology (IT) or Information Systems (IS) outsourcing as growing global phenomenon in the new millennium.
The value of the humanness outsourcing market estimated by Forrester is $ 120 billion and is expected to grow from $ 180.5 billion in 2003 to $ 253.1 billion in 2008. (http://blogs.zdnet.com/ITFacts/index.php?cat=29, twelfth March 2009) Although numerical estimates and figures may vary across sources, the set out of magnitude and expected growth of outsourcing in coming years cannot be denied.
2nd October 1989, Eastman Kodak signed a deal that forever changed the landscape of IT outsourcing. In an agreement worth nearly $250 million, Kodak deliberately and strategically handed IBM...
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