Running head: IT Outsourcing
University of Phoenix
August 10, 2009
Many benefits and disadvantages come with outsourcing out an IT function. Some benefits include freeing up the organizations own resources for other tasks, allowing the business to customize completely the program in which fits their needs and having the rights to the program to make changes to it. Some disadvantages are it might be more expensive, especially when the requirements become more difficult, the design and ideas are not always set in stone so it will cost more to make changes initially with the contractor, and lastly the contractor does not know the organization as well as the business’ own employees do.
Outsourcing out the programming job frees up the business’ own employees. The programmer(s) do not have to devote the time in developing the new programming job, but rather have that time to deal with production issues, or any other issues the business might come across. If they were working on the new programming job, they would not have the time to deal with those issues or they would delay the amount of time the programming job would take. Deadlines would become a factor if the businesses’ employees were working on the project rather than a contractor.
Another benefit of outsourcing out the programming project is the business can completely customize it to fit their needs. Since it will be a new program and is getting designed to the businesses’ specifications, they can make it exactly how they want it. They could do this with having their own employee’s write it as well, but could not if they were to purchase a pre-written solution. If they know exactly what they want, they can inform the contractor of those needs and they can design it accordingly.
A third benefit of outsourcing out the programming project is having the rights of ownership over the program. Giving the business the rights over the program, which...