Is Outsourcing Fool’s Gold BY:Violetta Bove and Luis Ayala

Outsourcing is when a company hires from another organization to perform a service.

Advantages of Outsourcing  Management Advantages - obtain expertise - avoid management problems - free management time  Cost Reduction - Obtain part time services - Gain economics of scale

Advantages (cont.)  Risk Education - Cap financial exposure - Improve quality - Reduce implementation risk

Who Do I work For?  Suppose your work for an outsource vendor. How do your respond to the change that your managers care only about how they appear to their employer ( the outsource vendor), not how they actually perform for the organization. I believe…………….

How does Economics of Scale work?  If a large number of people want to start their own payroll applications, then when the tax law changes, they have to learn the new law. They also have to change all of their software so that it agrees with the law and will have to give an explanation to all the changes.

Do you agree with a company making you do work that they cant figure out?  Some outsourcing companies will hand down work that they are not able to do, to sometimes less qualified employees, just to get it out of their hands. Is this necessarily bad or is it an opportunity for Someone else?

Infrastructure Outsourcing  Define as how well your communicate your technology needs to potential contractors, and the quality of the relationship you develop with the outsourcer.  How is outsourcing infrastructure like IS infrastructure outsourcing a companies cafeteria?  In what ways is it different?  What general conclusion can you make about infrastructure outsourcing?