To Outsource or Not to Outsource

I agree with what the authors stated that external suppliers could provide a more efficient IT service than that of the in-house one. The reasons are fairly obvious. External suppliers are competitive enough than that of the internal ones. They are more adept and updated with emerging technologies and live in a very competitive world. Unlike the internal ones, they tend to be more passive. They cannot explore much of their knowledge and practices due to internal constraints even if these companies are established and own sophisticated technologies.

Outsourcing IT is a vital decision. If the company has its own IT department and planned of outsourcing it, I think it would be best if they collaborate with the suppliers. I agreed with the authors that internal IT people could work with the team so that the project will be built according to what is being planned. Managers, as what the authors stated, tend to pass the jobs to the outsiders because they thought that there are no internal people who are skilled enough to perform the duty. This usually causes an unsuccessful project. Since there is no collaborative effort on both parties, the project usually fails. External suppliers fail to deliver the project because the company is dissatisfied with it. If they work in a team, both parties will gain something from each other; external players to deliver the project successfully, and the company to be updated with new technology.

There are also cases of selective outsourcing which the author stated. The company must know what to outsource or not. In-house technology functions are usually not disclosed to outside providers for strategic competition. All other functions may be managed and dealt best by external ones. What should be done is to have a proper selection of what functions be outsourced from the company. That is the vital consideration the management must decide, moreso, if the company had already its own IT system and only needed updating. Since external providers are more adept to this situation, their services are needed. And I truly agree on that.

In deciding of whether IT be outsourced, one must look on the financial stability of the company and the in-depth skills of her internal IT people. In a small-scale company, outsourcing service will be best since the cost is less. For larger ones dealing with vital information, I would recommend that they utilize their own manpower but with the collaboration of the outside ones. Because large and vital information is the life of the company, proper management must be made.