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:
(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:
(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.