Outsourcing IT

Outsourcing IT: What is Outsourcing Information Technology?

Companies are turning to outsourcing information technology for their service needs.

Information Technology, or IT, comprises of creating and supporting computer-based information systems, including networking, software and hardware. The field is in high demand as more businesses come to rely heavily on IT systems.

The demand for outsourcing IT services is growing worldwide. CNET News in 2005 reported that the global market for IT outsourcing topped $84 billion in 2004 and predicted it would grow by about 6 percent each year through 2010. The U.S. market, placed at $33.8 million in 2004, would grow at 4.2 percent during that time.

There are several benefits to outsourcing IT services. By shopping around, a company often can find a good match for the precise services it needs. It’s often low-cost than keeping the function in-house, both in terms of employment, training and lost time. The cost savings also permits companies to ponder on competing in their central business arena.

Nevertheless, there are some disadvantages. Outsourcing IT services doesn’t always bring the immediate 30 percent savings many studies cite, particularly among smaller companies where economies of scale are not present.

Furthermore, arriving into an agreement with a poor quality company might con the hiring company into a series of dependence from which it’s tough to escape. The cost of detaching itself from such an agreement may be extensive in terms of lost time and employee morale. Some business may lose some control over this area and collaborating with an organization outside your own can be a trouble. And in the end, some IT services dealers may merely overrate their accurate capabilities.

Outsourcing IT services is a growing trend as is outsourcing human resources functions.

 

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