Information Technology Outsourcing

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

you know that that the employee know what they
are doing.
Some of the problems IT outsourcing may encounter are, loss of strategic
control, risk of technological obsolescence, limiting of long-term flexibility,
difficulty in benchmarking initial contract, hostage to additional charges,
high exit or switching costs, limited choice of vendors, the fixed nature of
legal contracts, legal exposure, from dissatisfied former employees, and
cultural conflicts.
The people doing the outsourcing for the companies are sometimes the
life's-blood of that company. If the outsourcers want more money, then they are
almost obligated to give that money. This is usually the case when the
contractors are bringing new technology into the system.
High exit or switching costs entail the switch-over costs the company
must shoulder if they decide to end the outsourcing and hire full time employees.
It is important not to put too many resources at the hands of the contractors.
Limiting this will ease ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

CITE THIS PAGE: