Outsourcing can be defined as the process of turning partially or fully an organisation‘s IT services to external entities. Discuss the merits and demerits of outsourcing...

Outsourcing can be defined as the process of turning partially or fully an organisation‘s
IT services to external entities. Discuss the merits and demerits of outsourcing the IS
function in an organisation.

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Merits and demerits of outsourcing the IS function in an organisation
Advantages of outsourcing
?
Cost control due to fixed prices.
?
Greater certainty in long term planning.
?
Economies of scale
New skills and knowledge become available.
?
Resources employed can be scaled up or down depending on the needs.
Disadvantages.
?
Risks of information confidentiality/ security
?
Loss of competitive advantage- trade secrets.
?
Getting locked into an unfavourable arrangements- contracts.

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gregorymasila answered the question on December 17, 2017 at 13:46

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