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OUTSOURCING OF INFORMATION SYSTEM AND COMPUTERIZATION

 

There are five definable reasons which influence the decision to choose outsourcing:

(1)To enable the organizationís management to focus on the companyís main skills.

The management of the many organizations spend a great deal of time and attention on operational elements of information technology and computerization. When they should be focusing on things which are at the core of their very organizational and business existence.

(2)Inability to recruit and keep high quality professional staff

In order to support their information technology system, information systems departments encounter two types of problems:

  1. Inability to "attract" professionals in the field of infrastructure and technology systems.
  2. A variety of skills which does not require nor justify a full time position for every employee.

(3)The need for re-writes/upgrading of older systems

In many organizations, older information systems equipment must undergo upgrading or rewriting. The causes could be, among others: changing technology platforms(sometimes require by the supplier of the infrastructure) or functional incompatibility of the existing system.

(4)Inability to forecast and monitor information-system budgeting

In this area, there are three main problem, which are listed in order of importance:

  1. Organizations do not have a true picture of their total outlays on information systems and computerization.
  2. Organizations are unable to create budgets for information technology and computerization(and certainly not multi-annual budgets). The budgets are like "moving target"ógenerally upwards.
  3. Information system departments do not have incentives to become more efficient and to reduce their input and volume of activities.

(5)Information system userí low level of satisfaction

Outsourcing can be solution for companies and organizations dissatisfied with the functional of their information systems departments.

It is interesting to note that in most of those organizations which have internal information system departments(also known as insourcing ) there is no measuring of user satisfaction.

CASES DIAGRAM