1) Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer.
If you want to know, IT is a set of tools, processes and methods, such as coding or programming, data communications, data conversion, system analysis and design of control systems. It is also related equipment used to collect the data, process, and other important information. In addition, IT also include office automation, multimedia, and telecommunications. With the advent of IT, companies will be more advanced than ever before.
Outsourcing is used by companies, especially for downsizing and cost reduction in large company, can be used as a strategic tool to stabilize the financial implications of the company. Company need to focus on areas of competitive advantage. To achieve such results, the company must know the core competencies, the nature of work in the organization, and managing the outsourcing process. Thus, employees need to be more efficient in the workplace.
Competitive advantage can be found in a company through the IS / IT outsourcing is because have the experience and expertise in the field of IT. To get the right competitive, every company needs to take people with experience in employment and experts in the field of IT. It will help the company to avoid the hacking by anyone. In addition, before take a new employees, leaders need to test the ability of the employee. From there can to know that there is an advantage in itself.
Furthermore, it should take about outsourcing of IT so that it will be profitable and expand the company. It also needs to master IT will get lots of information through internet sources other than the information from people who are experts. In fact, all the information they need easily available through internet sources. It also can produce workers be creative, innovative and open-minded. Skills in technology can create a caliber as those who master the technology will get more useful info. For example, the technology website it can get info about employees.
The better risk management in business or in company is, outsourcing will allow you to share any risks related with your outsourcing partner there to ease your burden in employment. For example, by outsourcing the outsourcing partner that you are competent to reduce the risk involved in having the same job done at home by staff who may not be competent in the field.
Moreover, give your business a competitive advantage within the organization or in the project. The main benefit of outsourcing is that it helps your organization gain a competitive advantage in the market. Through strategic outsourcing the outsourcing partner, you not only provide your customers with the best, example of service. But increase your productivity when managing your internal resources wisely. Outsourcing can help you overcome your competitors who have not realized the benefits of outsourcing.