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Outsourcing in Organizations

What is outsourcing?

What affect does outsourcing have on organizations?

How is an IT organization affected by outsourcing?

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What is outsourcing?

When an organization transfers the ownership of a business process to a supplier, we can say that the organization is outsourcing. In outsourcing, a company contracts with another company to provide services that might be otherwise be performed by in-house employees. Some of the outsourced jobs by large companies are jobs such as call center services, e-mail services and sometimes payroll. The companies that handle these jobs are specialized in the service and are usually located overseas. The key aspect here is the transfer of control and ownership that makes it such a challenging, painful process as the buyer does not instruct the supplier how to perform the task but, instead, focuses on communicating what results it wants to buy and leaves the process of accomplishing the results to the supplier.

Currently, outsourcing takes the most common forms of information technology outsourcing (ITO) and business process outsourcing (BPO). Some companies which are short on time and money, such as start-up software publishers, apply ...

Solution Summary

The solution defines outsourcing, its effect on organizations and how an IT organization is affected by outsourcing. References included.

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