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Outsourcing Information Systems: Advantages/Disadvantages

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Outsourcing information systems functions can result in a reduction of costs when an organization uses a flexible workforce, such as to bring in contractors for the duration of a project. By using contractual workers, the organization typically is also spared from "employment" costs, such as benefits or lawsuits as the firm providing the contractors is the actual employer. Using such workers can also pose a problem. There may be a "revolving door" in contractors, which means no consistency in whom is performing the work.

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Solution Summary

This solution is about 300 words, citing several advantages and disadvantages an organization may encounter when the decision is made to outsource information system functions. Some examples include possible cost savings, but a loss of control and perhaps even data security.

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The advantages of outsourcing often include cost savings, flexibility in workforce volume and a reduction in employee expenses (such as benefits, liabilities for matters such as wrongful termination or workplace injuries). Instead of an organization, have full-time employees to manage a job task (like responding to "Help Desk" calls) or projects (installing a new email program) - outsourcing permits organizations to pay a third party agent (TPA), on a contractual basis, for such ...

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