Benefits Vs. Risks Of Outsourcing IT Services
The Chron article, “Benefits vs. Risks of Outsourcing IT Services” focuses on the benefits and risks associated with outsourcing information technology (IT) and services. It also suggests that businesses carefully weigh the benefits and risks of outsourcing their IT functions.
The article cites four benefits and three risks that are commonly associated with outsourcing IT services. The benefits include: 1) Saving money. This is one of the most important reasons why companies choose to outsource because it frees up capital for business operations that directly produce revenues. 2) Controlling expenses. Outsourcing functions to businesses that specialize in IT services reduces internal operating costs and allows for more competitive pricing of goods and services. 3) Focus on Core Operations. This allows managers to focus on business goals and objectives without splitting time and energies outside of their competencies. 4) IT Resources Near Those of Big Businesses. Outsourcing IT functions allows small businesses to gain more equitable cutting edge technology and services that are comparable to large businesses.
Conversely, the author cites the following risks associated with outsourcing IT: 1) ‘Dubious Accessibility’. The company may experience lengthy downtime during caused by system failures, which are likely to result in loss of money and productivity. 2) Loss of Personal Touch. IT outsourcing doesn’t provide the personal effect comparable to that of an in-house IT specialist, which may impact the efficiency, speed and personal results that most managers are reluctant to give up. 3) Substandard Security Protocols. Outsourcing companies may not have the same level of robust security as their internal IT network, which may pose a risk to security
