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Outsourcing And Information Technology Essay

1829 words - 7 pages

1.1 Outsourcing
Outsourcing can be defined as an any task, operation that being contracted to a third party for a significant time. This outsourcing process was done in order to reduce costs by transferring portions of work to outside supplier rather than completing it internally.

One of the examples of outsourcing that the company usually use is application services provider (APSs). This application involves things like payroll, billing and customer services. Company that using this APSs application, do not have to hosting software and maintain it.
1.2 Information Technology (IT)
Information technology (IT) is the technology component of an information system (IS) or the collection of the computing system in an organization. IT includes the use of computers and applications while transform the data into information and knowledge.

There are many areas that apply IT application such as public health. For example, it is include vital statistics, investigation and research, survey and environmental health.

However, although public health do not apply all of the IT application, it is important to learn the basic of IT for the future purposes.

1.3 Information Technology (IT) Outsourcing
The development in the business field has given rise to a variety of businesses competitiveness and demanding in the market. Hence, to survive in this development in this 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 too in order to perform more quickly and be at a lower cost by subcontractors.

The IT outsourcing could be determined as a contracting with the other company or organization to enhance or to develop the IT for business purposes. Outsourcing seems to be an attractive option for the company to take advantages of global opportunities.

1.4 Competitive Advantages
Competitive advantages is the advantages of the companies give to the customers in terms of lower prices, high quality and services and also have a lot of benefits to the consumer. These competitive advantages would be differentiators between the company’s abilities and their competitors. In additions, these competitive advantages would show how best the company perform compared to other company.


2.1 Saving More Time
Each person has their own talent of doing something and they also have their own weaknesses. For example, a good engineer might not be a good teacher and vice versa. This situation is similar with this IT outsourcing. Time could be saving if work that are not in our field, we outsource it to the person who are more talented in that work or task.

For example, in Royal Bank of Scotland has been outsourcing other IT company to updating their software....

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