IT functions Research Paper Example | Topics and Well Written Essays - 1000 words

IT functions - Research Paper ExampleFirstly, outsourcing controls operating costs such as behavement oversight, health insurance, retirement plans and employment taxes costs that the company would incur if were to employ IT experts and other workers for IT department.Secondly, outsourcing enables the company to focus its competencies of on the core business activities app arently, learning technology is non a core activity for most plaques. An organization may also outsource due to lack to of competent human resources that can manage its information technology needs.The need to outsource may also be triggered by the organizations need to free internal human resources for other purposes for which they are experts instead of engaging them in IT functions where their competencies may be low. An organization may also outsource information technology services in order to boost exceptional capabilities from IT specialists. Finally, the company will choose to outsource in order to r etain capital funds for capital investment projects.On the other hand, the organization will consider not outsourcing information technology services due to factors such as internal availability of human resources that are skilled to manage IT services. Further, if the company has surplus funds such that all viable investment projects have been adequately financed, the excess funds may be directed to IT development.Outsourcing poses a number of risks that firms should consider when deciding whether outsourcing the IT function is the best decision. Outsourcing creates dependence of the organization on the Information technology services provider. The outsourcing organization might experience adjusting problems when the outsourcing subdue ends. In addition, the organization may not have the capacity to develop its own IT infrastructure as soon as the outsourcing contract ends and the results of this inability may be adverse to its operating activities.By outsourcing, the firm loses c ontrol over several