ISSUES IN OUTSOURCING

Issues in Outsourcing

Abstract

The main purpose of this research proposal is to understand the different issues which the companies face in information technology outsourcing. Information technology is growing day by day, and companies are going for the adoption of information technology outsourcing. Along with it's so many advantages, there are also some issues and challenges which the companies face while going for the information technology outsourcing. This paper focuses on all the information technology outsourcing issues faced by a company.

Table of Contents

Introduction4

Literature Review5

Cloud Computing12

Effect on IT Professionals14

Methodology14

Quantitative Research15

Rationale for a Qualitative Study15

Research Method16

Primary Data16

Secondary Data17

Research Design18

Analysis19

Expected results19

References21

Issues in Outsourcing

Introduction

Outsourcing can be defined as subcontracting a production process to a third-party company. As a result of outsourcing, firms move entire business functions to external service providers. Outsourcing can significantly increase the efficiency of a company and give it the ability to attract almost any staff to implement a wide range of services necessary for the business during that time. Outsourcing is a practice which is being carried out by large companies. The purpose of outsourcing is to reduce the cost of the processes significantly as the company performs that task through external sources.

Small and medium size businesses use outsourcing because it is less time consuming and less difficult. In this way, companies can focus more on the important core functions of the company (Applegate, 2005).

Statement of purpose

The main purpose of this paper is to discuss the issues in the outsourcing. This paper focuses on the issues which a company can face while adopting the technology outsourcing. A company faces different issues in the technology outsourcing, which can be the government problems, the contractual problems or any technology related problem. The paper focuses on the all the issues and challenges faced by a company while outsourcing the technology (Gopal, 2003).

This paper is important and beneficial for the company authorities, so that they can have the proper knowledge about the issues and challenges of outsourcing. This paper is also important for the students of information technology, and increases their information and knowledge about the technology outsourcing issues, software and different systems.

Background of the Study

Outsourcing has changed the way global business is conducted. Before, outsourcing was just a means to reduce the operational costs of the company. Now, companies need to have more reasons than cutting costs in order to meet the additional demands of companies. Companies which outsource have various reasons why they do it. According to researches, the primary force behind and the most important reason why companies outsource is to reduce the cost of operations (EquaTerra, 2009).

A company that provides quality service or products but at a higher cost would never be appealing to the customers. Hence, superior quality should be available at lower cost and will help in extending operations of the company overseas where cheaper labour is available. Companies which outsource have higher customer retention rates. If a company gives more importance to combining creative programs and motivating talented agents with timely execution, then there are dramatic ...