Solution
David answered on
Dec 22 2021
Outsourcing - Customer and Organization Reactions to Outsource IT Help Desk
Introduction
Outsourcing refers to giving out a portion of the work to another nation in order to
have it done in a better and more efficient way. It may be within the country or may be given
to a firm in another nation. U.S. manufacturers become vulnerable to offshore outsourcing as
they have to compete with them. In case of the offshore outsourcing suppliers being in a
position of providing better quality at competent or lesser prices due to well developed
competencies and unique resources, technology or cheaper man power availability, then the
host country has a competitive advantage which leads to formation of a threat to the
manufacturers in USA. In this way U.S. manufacturers become vulnerable to offshore
outsourcing (Allen, L. 2008).
Outsourcing begins usually when a firm‟s operations exceed its limit of being able to
perform efficiently. As the operations of a firm exceed its capacity and are not a part of its
core competencies, then it becomes important for the firm to outsource these activities to
those who can perform them efficiently and also can do them effectively. A job is done better
y a firm who is a market leader or an expert who specializes in certain critical areas. It helps
the firm achieve ease at work and also benefit out of economies of scale. This will help the
firm move ahead of other firms who do not specialize, but still perform certain functions as a
part of their total business. Though they can perform them, they would be putting in more
time and efforts, thus increasing the overall cost of production of goods and services
(Kavanagh, M. 2004).
In cases of not being able to perform a task efficiently and effectively, outsourcing
ecomes a blessing and helps the firm achieve a lot of savings of effort, time and capital. A
firm might not be able to handle an order completely, but would be extremely competent at
delivering some of the tasks. In such cases, it is essential that the firm opts for outsourcing
and delivers the completed product or service to the final customer. Outsourcing can be based
on technological outsourcing or outsourcing of a particular business function. In any of these
cases there is a requirement of consideration of certain factors which includes the cost benefit
analysis as one of the most important considerations. It really matters as the cost of the final
product is greatly influenced by this strategic decision of outsourcing. It is very important to
consider the benefits and disadvantages of outsourcing to be able to make the right decision.
It is extremely important to be able to make this strategic decision co
ectly as it could
otherwise cause a company or a product is success as well as its competitive position in the
market (Kavanagh, 2001).
It is extremely important that a firm should analyze its strategic position in the
market. A firm can analyze its strategic position by an analysis of its internal as well as
external environment. This would help the firm formulate its outsourcing strategies in a well-
planned and strategic manner. It would be able to analyze its own position in the market as
well as the position of other competitors and understand that it is possible to be able to make
this decision on a strategic basis and not on a pure cost analysis (Aladwani, A.M, 2001).
The outsourcing market has experienced strong growth over the last several years
ecause of businesses' need to focus on core competencies, Web implementation initiatives,
consolidation across industries, and a tight labor pool. The outsourcing of noncore,
transaction-based processes has gained significant momentum over the last few years as
organizations have become more comfortable with the concept of outsourcing and its
advantages.
Organizations elect to outsource for a variety of reasons. Some of these reasons are
tactical, while others are strategic. No one would seriously expect an oil company to
outsource its exploration and refining functions; pharmaceutical companies probably would
not outsource their research and development; and few, if any, major automakers would
consider out-sourcing their production planning or marketing campaigns. These activities are
core to their businesses and often the means for differentiation in the marketplace and a
source of competitive advantage. Businesses outsource their noncore functions, such as
payroll and IT.
In the urge to downsize, “right size,” and eliminate headquarters staff, and to focus on
value-added activities and core competencies in order to survive and prosper, public and
private organizations have outsourced an extremely
oad range of functions and activities
formerly performed in-house. Some activities, such as janitorial, food, and security services,
have been outsourced for many years. Information systems (IS) is one activity that has
eceived much attention recently as a target for outsourcing.
Research Problem:
This paper will focus on analysing the below listed aspects which will help in
analysing the need of outsourcing. In this we will analyse the reaction of outsourcing the IT
desk.
Purpose of research:
The purpose of this research is to analyse the behaviour of the customers and
organizations reaction to the outsource the IT desk of the company.
Research methods:
Research philosophies are one of the most important aspects of the research which
focuses on analyzing the human behavior. According to Collis and Hussey, 2003 the...