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Critical Success Factors in Deciding to Outsource IT Functions

What are the critical success factors in taking the decision to outsource IT functions? Which functions, if any, can/should be outsourced? What are the risks associated with outsourcing or offshoring?

Please include references.

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Critical Success Factors in taking Decision to Outsource IT functions:

- Total Cost of Ownership (TCO): This refers to total costs associated with offshoring. By weighing costs and benefits of offshoring of different business operations an organization can decide which operations should be kept at home and which should be outsourced.
- Return on Investment (ROI): The decision to outsource would involve some investment from the organization. Hence it is important that offshoring provides minimum return on investment as set by the organization.
- Future Proofing: By taking decision to outsource the organization can become future proof, or, changes in technology are taken care of by the vendor. Hence without been required to maintain IT infrastructure, the organization would be up to date with the latest technology.
- Business Excellence: Another critical success factor behind decision to outsource is that organization's ...

Solution Summary

The critical success factors in deciding to outsource IT functions are provided.