Need for outsourcing as a result of changing economic environment
Responses to classmates
Student # 1
The development in the business fields has given rise to number of businesses and has increased competitiveness and market demand. Hence, to survive in this fast growing 21st century, the organizations need to search globally in order to gain the opportunities and resources. Besides, the enterprises also need to focus on the core competencies and mutually beneficial long-term relationship. In addition, they need to outsource some of activities in order to fulfil the business needs more quickly and lower the cost (Solli-Sæther & Gottschalk, 2015).
For example, Royal Bank of Scotland has been outsourcing there IT related work to other IT company to update their software. Since they are running their business in the field of finance, they are not expert in IT. Hence, if there are other people who are expert in IT field, the tasks will be done smoothly within time limit (Solli-Sæther & Gottschalk, 2015). If we want to make it by ourselves, we might need a lot of time to learn the basics of IT and even after learning IT, it will be very hard to have expertise with basic knowledge.
On the other hand, outsourcing the IS/IT will benefit the company or organizations in terms of services. The company can be more focused to their major services or products that they are provided to the customers. The outsourcing companies will ensure and take the responsibility of entire system, they will keep the system up and running. In case of any maintenance outsourcing company will provide 24/7 support to the customers (Gurung & Prater, 2017).
For example, Al-Ikhsan company which sells huge variety of products and services. Hence, they should be more focused on how to increase their sales and increase their productivity while other side like maintaining and develop a website should be outsourced to the others vendor (Gurung & Prater, 2017). Therefore, once the company decides to do outsourcing, they can reduce their costs. For example, the company can hire somebody to build up and maintain their website in order to promote or sell their products or services through the internet.
References
Gurung, A., & Prater, E. (2017). A research framework for the impact of cultural differences on IT outsourcing. In Global sourcing of services: strategies, issues and challenges (pp. 49-82).
Solli-Sæther, H., & Gottschalk, P. (2015). Stages-of-growth in outsourcing, offshoring and backsourcing: back to the future?. Journal of Computer Information Systems, 55(2), 88-94.
Student # 2
The development in the business fields has given rise to number of businesses and has increased competitiveness and market demand. Hence, to survive in this fast growing 21st century, the organizations need to search globally in order to gain the opportunities and resources. Besides, the enterprises also need to focus on the core competencies and mutually beneficial long-term relationship. In addition, they need to outsource some of activities in order to fulfil the business needs more quickly and lower the cost (Solli-Sæther & Gottschalk, 2015).
For example, Royal Bank of Scotland has been outsourcing there IT related work to other IT company to update their software. Since they are running their business in the field of finance, they are not expert in IT. Hence, if there are other people who are expert in IT field, the tasks will be done smoothly within time limit (Solli-Sæther & Gottschalk, 2015). If we want to make it by ourselves, we might need a lot of time to learn the basics of IT and even after learning IT, it will be very hard to have expertise with basic knowledge.
On the other hand, outsourcing the IS/IT will benefit the company or organizations in terms of services. The company can be more focused to their major services or products that they are provided to the customers. The outsourcing companies will ensure and take the responsibility of entire system, they will keep the system up and running. In case of any maintenance outsourcing company will provide 24/7 support to the customers (Gurung & Prater, 2017).
For example, Al-Ikhsan company which sells huge variety of products and services. Hence, they should be more focused on how to increase their sales and increase their productivity while other side like maintaining and develop a website should be outsourced to the others vendor (Gurung & Prater, 2017). Therefore, once the company decides to do outsourcing, they can reduce their costs. For example, the company can hire somebody to build up and maintain their website in order to promote or sell their products or services through the internet.
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