Outsourcing or Insourcing???
Firt of all, I reveal that I'm working in IT department in Financial Institute.Thesedays I'm concerned about the position of IT organization which is not in IT company.
More specifically speaking, it is whether the company have IT organization or not.My coworkers feel betrayal for me to think that IT function is able to be outsourced, But as a MBA student I think that company need to concern IT outsourcing.
Some research write that Main objectives are 'Cost down' and Improve the IT service level with acquiring high technique and technician.Also 65.4% of companies had very high satisfaction level.
On the other, The problems of implementing IT outsourcing are increasing cost and difficulties in control.
This means that it needs to improve the cost side for achieving the objectives of IT outsourcing.Some people who resists outsourcing give these reasons and insist that the cut down cost is less than thought and the difficulties in control doesn't make timely service.
I heard it from my middle mangers.
I understand a little for IT stablization, But I think that the value of IT services in not IT company should not be evaluated correctly.
Many IT employees dissatisfied that the company don't know their values, But In the case of outsourcing they may outcry 'we give great value to company and Nobody must not replace to ours'.
As a results the more outsourcing company have clear core competency and explicitly think about core competencies for concerning IT outsourcing,the higher performance to outsourcing.
If so, What should I do?whether adopting IT outsourcing and increasing managing skills or making IT core competency in the company?
I think my future will be groomy because my company choiced IT outsourcing.
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3 comments:
I think IT outsourcing is dependent on two factors. First is trasaction cost. The cost maybe involved all of the time and efforts to search, research, and develop the more new or the more stable technology. Growth of IT outsourcing means the cost increase and it is budurn to keep in inner organization.
Second is the speed, I think, in IT. Almost companies in most of industries could understand It is impossible that they catch and cover the change speed of IT.
In my opinion as integrated result, IT memember have the special knowledge and skill and agility to cover IT change. I think it is not problem to increase outsourcing in IT market or not. It is critical for you to have opportunities to get the agility and speciality in current organization.
I think so, My Department have to try to have skills and knowledge,But in many case, IT outsourcing is selected by strategic decision making without considering tradeoffs.
At first, Many service vendor provide lower cost than present.But later on, TOC will be increased incrementally not dramatically.
After 5 or 6 years, We will realize the huge amount of cost,but we can't change the vendor because of dependency on vendor. So, I think that although we accept the IT outsourcing strategy, We remain the core members who have core skills and knowledge.
I think IT generally support role on value chain of company. and IT outsourcing or not shoud be decided by strategic decision judgement. As a resource based aspect, If A company have no effective and efficient performance to IT, Outsourcing is possible. but, if the IT of the company have core competence, shoude be considered with prudence.
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