Information Technology OutsourcingOutlineWhat is IT? Outsourcing?Why Companies OutsourceReasons for OutsourcingWho is outsourcing?What Jobs are being Outsourced?Where are they outsourcing to?Outsourcing ProcessesOutsourcing ConsultantsExamples of IT OutsourcingBenefits of IT Outsourcing (Cntd.)Difficulties of IT OutsourcingConfidentiality and IT OutsourcingWhat does Outsourcing Mean for the Western World?Slide 16Outsourcing ParadoxIs Outsourcing a Good Thing?Is Outsourcing a Good Thing? (Cntd.)Questions?ReferencesSlide 22Information Information Technology Technology OutsourcingOutsourcingBy: Andrew ButlerBy: Andrew ButlerMichael ChengMichael ChengCarlos GarciaCarlos GarciaOutlineOutlineWhat is outsourcing?What is outsourcing?Why do companies outsource?Why do companies outsource?Who is outsourcing?Who is outsourcing?What jobs are being outsourced and where?What jobs are being outsourced and where?Outsourcing processes.Outsourcing processes.Outsourcing consultants.Outsourcing consultants.Benefits/difficulties of outsourcing.Benefits/difficulties of outsourcing.Outsourcing and the Western World.Outsourcing and the Western World.Outsourcing paradoxOutsourcing paradoxIs it a good thing?Is it a good thing?What is IT? What is IT? Outsourcing?Outsourcing?Information TechnologyInformation Technology–The development, installation and The development, installation and implementation of computer systems and implementation of computer systems and applications.applications.OutsourcingOutsourcing–Contracting with outside professional services Contracting with outside professional services to meet specific business needs.to meet specific business needs.IT Outsourcing-it should be noted that IT Outsourcing-it should be noted that outsourcing has existed for a long time, outsourcing has existed for a long time, and is a commonly accepted business and is a commonly accepted business practice.practice.Why Companies Why Companies OutsourceOutsourceCompanies outsource to:Companies outsource to:–Seek world class skills abroad while Seek world class skills abroad while cutting costs.cutting costs.–IT is relieved of time consuming, IT is relieved of time consuming, routine tasks.routine tasks.–Cost predictability, savings and the Cost predictability, savings and the ability of a company to focus on core ability of a company to focus on core competencies.competencies.Reasons for Reasons for OutsourcingOutsourcingWho is outsourcing?Who is outsourcing?There is a variety of companies There is a variety of companies that outsource, but there seems that outsource, but there seems to be trends in IT Outsourcingto be trends in IT Outsourcing–BanksBanks–Medical offices Medical offices –Mortgage Companies Mortgage Companies –Software developmentSoftware developmentWhat Jobs are being What Jobs are being Outsourced?Outsourced?Some typically outsourced jobs have the Some typically outsourced jobs have the following traits:following traits:- Technical with measurable standards- Technical with measurable standards- Relatively easy for knowledge transfer- Relatively easy for knowledge transfer- Can be done without direct physical contact - Can be done without direct physical contact with customers or colleagues.with customers or colleagues. Specific IT jobs that are outsourced include:Specific IT jobs that are outsourced include:– Research process, IT operations, Medicare, legal Research process, IT operations, Medicare, legal support servicessupport services–Art, animation, editorial and DTP workArt, animation, editorial and DTP work–Software developmentSoftware development–Environment servicesEnvironment servicesWhere are they Where are they outsourcing to?outsourcing to?IT Outsourcing can be farmed out to a IT Outsourcing can be farmed out to a variety of places, but you will find more variety of places, but you will find more often than not, to developing countries often than not, to developing countries on the rise.on the rise.–Bangalore, India (Call centers)Bangalore, India (Call centers)–The PhilippinesThe Philippines–Saudi ArabiaSaudi Arabia–ChinaChina–Eastern Europe Eastern Europe –CanadaCanadaOutsourcing ProcessesOutsourcing ProcessesOnce a company has decided to Once a company has decided to outsource certain IT functions, it outsource certain IT functions, it should consider the following:should consider the following:–What services to outsource.What services to outsource.–Which IT outsourcing firm provides Which IT outsourcing firm provides these services.these services.–Evaluate top candidates.Evaluate top candidates.–Checklist.Checklist.Outsourcing Outsourcing ConsultantsConsultantsIBM and UnisysIBM and Unisys–Both IBM and Unisys offers a wide range of Both IBM and Unisys offers a wide range of IT outsourcing solutions for businesses.IT outsourcing solutions for businesses.Network Outsourcing ServicesNetwork Outsourcing ServicesManaged Storage ServicesManaged Storage ServicesManaged Security ServicesManaged Security ServicesE-Business Hosting ServicesE-Business Hosting Services–IBM is a pioneer in IT and Outsourcing IT.IBM is a pioneer in IT and Outsourcing IT.–Unisys is a major competitor to IBM.Unisys is a major competitor to IBM.Examples of IT Examples of IT OutsourcingOutsourcingUnisysUnisys–City of MinneapolisCity of MinneapolisIBMIBM–ING BankING BankBenefits of IT Benefits of IT Outsourcing (Cntd.)Outsourcing (Cntd.)Improved Service to the CustomerImproved Service to the Customer–Outsourced companies can receive tech Outsourced companies can receive tech support 24/7, with a smaller budget.support 24/7, with a smaller budget.–Outsourcing companies generally use Outsourcing companies generally use standardized equipment and methods.standardized equipment and methods.Saves time and money for the customer.Saves time and money for the customer.–When IT is outsourced, it allows a company When IT is outsourced, it allows a company to concentrate on its core competency.to concentrate on its core competency.–IT professionals use list of reliable vendors, IT professionals use list of reliable vendors, which will improve quality of goods and which will improve quality of goods and services received.services received.Difficulties of IT Difficulties of IT OutsourcingOutsourcingThreats to security and confidentialityThreats to security and
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