Friday, September 08, 2006

IT Outsourcing Reaction Paper

Managers should be very wise in making decision whether to outsource their IT or just kept it in-house. They should consider the effects of these decisions and they should not assume nor presume if they really mean business. They should evaluate if IT outsourcing can help them in achieving their company’s objective, which is to maximize flexibility and control. Their decision whether to outsource their IT or just kept it in-house should depend on the situation.
The managers should not try to invest in fancy equipment and customized software if they think it’s strategic, but its not. They should put in mind that our technology is changing and it will change the company’s IT needs. In case of unfamiliar or new technologies, many managers think that no one in the company has enough technical knowledge and skills to assess these new technologies, the tendency is, the manager will directly decide to hand over the job to an outside provider and end up experiencing unsuccessful results because the company lacked knowledge to negotiate contracts and don’t have the knowledge how to evaluate the supplier’s performance. Therefore the manager should think of alternatives to avoid this to happen. One alternative is to hire a supplier to team up with company’s IT staff on the project so that the company will learn about the new technology and can negotiate a contract if they decide to outsource.

2 comments:

bEb said...

IT sourcing, as I may say, is a sensitive decision on the company most especially if the company is storing sensitive information as part of their business strategy and do not let any of these to be exposed to their competitors.

Honestly, when we were tasked to submit a reaction paper regarding IT outsourcing, I was also having a difficulty of deciding whether it is good or not to outsource IT. Reading the article given to us, I place myself in the shoes of the company IT staff. I was in dilemma. There are many things to consider if we should outsource IT. But if the company holds no sensitive data, I think there is no problem outsourcing it.

rician said...

In our industry today here in davao city. Companies really have a hard time finding IT professionals that can be dependend on. One factor would be that those really good professionals and competitive programmers prefer to work in IT Outsourcing Companies then to work in Non IT Companies. Me, me self would prefer to work in an Outsourcing Company then in other industries. Experience wise, you can really learn a lot from Outsourcing Companies because you will not be limited of what you will learn coz Outsourcing companies have really to update their services to be more competitive. Not like in a non IT industry, you will be holded back by the companies policies and will only have to be knowledgable about what the company wants. Thus, the skill you will need to a competitive programmer will not be updated when years go by.