MGS 3040-03 Group D. TO THE OUTSOURCE VENDOR *Take of control *Obtain expertise *Deliver error free services TO THE ORGANIZATION *Avoid management problems.

MGS 3040-03Group D

TO THE OUTSOURCE VENDOR

*Take of control*Obtain expertise*Deliver error free services

TO THE ORGANIZATION

*Avoid management problems*Free management time*Improve quality*Reduce implementation risk

Every vendor has a set of forms, procedures, committees, reports and other management tools

They have to do things according to the vendors standard blueprint

If they allow every company to be different than they will never gain leverage or profits

I strongly disagree with this statement, this is very bad for the company. Every company have their own sets of forms, procedures, data, and management tools. If you don't know how to figure out or don't know how to handle an important managerial function you are in deep trouble. You can't rely always on someone else thoughts, you have to have the knowledge of the functions to question future ideas and catch some eventually mistakes. You can't put the life of your company in someone else's hand with a completely eyes closed.

It is possible for an outsource vendor to achieve economies of a scale that isn’t possible for the hiring organization by: Reduce implementation risk

▪ Paying one fixed cost on solving a function in your company rather then paying more for an internal employee to learn the function every time it changes.

Risk Reduction▪ Easier to hire and fire an external vendor then it is for an internal employee.

Reducing the cost in your company. ▪ Hiring an outside vendor reduces the risk of making a bad choice for the

company because they know what procedures to make .

The phenomenon doesn’t justify outsourcing because it means that your company has to rely on an external vendor on a function that your company should be able to do on its own. The company losses its intellectual capital and relies on the minds of external vendor and doesn’t know their direction in their goal. The company can be paying someone else’s mismanagement. It is also expensive and risky if the decision to change vendors is ever made. Outsourcing shows that the company doesn’t show control in the direction they are taking.

Outsourcing is the process of hiring another organization to perform services.

The organization save money reduces cost of hiring personnel, improve service, and reduce risk.

Per the father of modern management, Peter Ducker “your back room is someone else front room” This mean that some companies such as Bing, or Google wants to be known as the globally leader search. They do not want to be known as how well they run their cafeteria. In this case these companies will hire an agency that specializes in food services. On the other hand, Food Services Company (front room) will be able to perform this job, (the outsourcing company).

Outsourcing IS infrastructure functions are to plan the use of IT to accomplish organizational goals and strategy, Develop operate and maintain the organization’s computing infrastructure, Manage Outsourcing relationship.

It is not just to hire a company to perform a service we do not want to do, it is also to manage the outsourcing. For example, many businesses are investing Web 2.0 opportunities and planning utilizes those capabilities to better accomplish their goals.

Information System assists companies to achieve their goals more than just get rid of a problem.

Information technology focuses on products, techniques, procedures, and designs of technology.

Some believe outsourcing is a treat to US economic.