Running head: IT OUTSOURCING
IT Outsourcing is whereby a company uses other service providers to conduct other IT
functions of the company. This includes organizing a direct strategy for the company, the
management of the company’s infrastructure as well as managing the service desk of the
company. In some companies, Outsourcing extends to the transfer of several employees from
one company to another for learning purposes. It could also include the transfer of electronic
gadgets to other companies for various reasons. Not all companies practice Outsourcing. Other
companies practice both Outsourcing and in house management, depending on their availability
of infrastructure and resources. In-house management is whereby the company or organization
conducts everything for themselves. This includes the management, production, and distribution
processes (Fitoussi & Gurbaxani, 2012).
Several advantages come as a result of practicing IT outsourcing. These advantages
include the following;
To cut costs used in production. This is one of the main benefits of IT outsourcing. Companies
who exercise Outsourcing in their company end up saving a lot. This is a result of the time and
money saved, which would have been used in the production process. Outsourcing helps to keep
the money that would have been used to purchase the necessary production tools etc.
Increase in profits. The com...
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