Question Management Information Systems Discuss some of the

Question - Management Information Systems

Discuss some of the challanges of outsourcing IT Services in an organization [10 Marks]

Solution

Challenges of outsourcing IT services in an organisation:

1.real cost:

There are costs involved with outsourcing IT. Example:

when you schedule an appointment with your outsourced IT company, you\'re going to be charged for the drive time there and back. And what about when that outsourced engineer has no idea how to fix your issue and has to learn on the job? Are you willing to pay for that? It\'s one thing if your own employees learn as they go. But it\'s a different story when a contracted employee does it. There are other real costs as well, such as when you get recommendations from the outsourced company that aren\'t actually needed.

2.time factor:

When you have an emergency, it will have to wait until your outsourced IT department can get someone there. You\'re also subject to the calendar of your outsourced company, and many factors can cause your emergency to be pushed back. Had IT still been in-house, the emergency would be dealt with right away.

3.familarity with network and systems:

When your IT is in-house, your IT workers know your system and your network really well. They should: They probably built it. So it\'s likely that in-house IT workers can keep your systems running more smoothly and solve emergencies much faster. Yes, it is true that even an outsourced IT department can learn your systems and networks. But there will be ramp-up time, as well as the possibility that a lack of documentation can cause serious issues.

4.employee relationships:

When employees are in-house, they know one another and know how to interact well with one another. If you are outsourcing your IT, you may or may not get the same engineer showing up every time. That means your employees must get used to different contractors and how they work. With an in-house IT staff, relationships can form and solidify. Of course, that\'s not to say relationships with outside staff can\'t be built. But bringing in IT from the outside causes a fluctuation. It may not always be a problem, but I have seen it create issues to the point that an engineer was banned from being deployed to a client.

5.liability:

There are certain instances where information or situations can become a liability when a third-party is brought in. Security measures may need to be implemented to protect company data, employees, systems... everything can become a liability. You never know when data is accidentally going to walk off on an external hard-drive or be left in a car and stolen. You add another piece to the puzzle, and more things can go wrong. Add to that the fact that no one is going to treat your company data with the care and importance that someone in-house will.

6.loss of work:

When an employee\'s machine goes down, that employee will lose the ability to work until the outsourced IT department can make it in to resolve the issue. That loss of productivity can be costly. The response time and calendar issues you will face with outsourced IT will continually cause a loss of work. With in-house IT, response time is only a matter of walking down the hall.