Similarities between management of I.T. departments and other departments. I.T. departments have some specific functions requiring management. Many different ways to manage an I.T. department. Management have significant decisions to make. Both directly and indirectly employed staff used to satisfy workload.
Similar to contracting but on a larger scale. Instead of employing an individual, an organisation with many resources and specialisms and much knowledge is sourced.
Common method to fulfil human resourcing requirements. Often brought in a for specified time and/or project. Contractors help even out peaks & troughs in workloads. Contractors are expensive compared to directly employed workers. Also knowledge gained by contractors leaves organisation when the contract ends. Contractors have a period of time when they need to get up to speed on how […]
Outsourced I.T. services often offshored – work is carried out in a different country, often different continent. Common destination for offshoring is India. Expected benefits of offshoring: reduced costs improved quality potential 24 hours operating time, time zone pending “In the past Wipro would send about 100 employees to write, install and provide support for clients’ accounting software, said Wipro […]
All I.T. functions can be outsourced, or individual ones such as: Software development significant amount of offshore development carried out in India. Can reduce cost of software development and may contribute to better quality software. Software maintenance Allows organisation to focus on new development. Has peaks & troughs so beneficial to outsource. Network management Access to economies of scale and […]
Contract management costs Loss of knowledge Costs if outsourcing relationship has problems Cost of any tender process Possible security problems
Enables management to focus on core business Cost benefits from the economies of scale provided by the outsourcer Helps manage peaks and troughs of workloads Access to specialist skills Access to the outsource’s knowledge Helps manage risk
When an organisation has another organisation carry out some of its work activities to an agreed level in return for payment. Examples include services such as catering, cleaning and security. In I.T. outsourcing has being growing since 1970s and since 2000 there has been a growth in business processes being outsourced too.