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    Advantages & Disadvantages of Outsourcing

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    2-3 page paper about outsourcing from the perspective of a multinational firm (Yes, this may be a hypothetical firm), be sure to answer the following questions:
    1. What are the advantages of outsourcing?
    2. What are the disadvantages of outsourcing?
    Discuss why these are advantages and disadvantages and to whom.

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    Solution Preview

    A multi-national company named Wilson, Inc., is a reinsurance company. It has two IT departments, one is strategic and the other one is nonstrategic. The strategic department consists of its CIO Phil Nieves and with him are two IT employees. The department is in-charge of the company's core functions which are the business processes, information analysis and project, business analysis, and the program and relationship management.
    The other tasks concerning the operation of the IT department such as the storage, help desk, and everything that are not considered as core competencies are all outsourced to an outsourcing IT company called ITD Outsourcing Company.
    The company has decided to outsource the other tasks to allow the internal IT department to focus on projects which have high-potential for the company in its efforts of gaining strategic competitive advantage. The company states some of its reasons and benefits for outsourcing their tasks. Among them are the speed to market, the opportunities to have more time to manage cost and risk, the decision to take this as a long-term strategic decision, and a high degree of process to justify picking Logicals.
    Wilson, Inc. is a small company but it has a big IT infrastructure and it outsources some of the tasks on hand in order to provide better and more efficient service to their clients. They can have more time to work on projects that are strategically important to the company while they outsource the ...

    Solution Summary

    The solution is composed of 2-3 page discussion of a multi-national firm's outsourcing their IT department, particularly the advantages and disadvantages of outsourcing. References are included.