Factors for Outsourcing The most obvious factor in whether or not to outsource is cost. Companies are driven by profits. If the cost of outsourcing outweighs the Return on Investment (ROI) then it is unlikely executive management would consider the option. However, in today’s environment companies like Amazon are able to achieve vast efficiencies by consolidating massive resources into a global Infrastructure as a Service (IaaS) capability. Services like AWS can establish thousands of virtual servers within an hour. All within Amazon’s mature, secure, and stable environment. Another factor for outsourcing is, in by doing so, allowing a company to focus on its core competency and not be burdened by IT requirements. Additionally, companies like AWS provide robust, scalable, and leading edge capabilities that would be, for most, excessively burdensome to plan, implement, maintain, and operate. However, though AWS can deliver organizational requirements to the majority of potential customers, some are more feasible than others. Big data companies which have massive analytics requirements need customized server configurations to attain deliverable efficiencies.
References: Batta, MJ. (2012). Factors Influencing IT Outsourcing. Retrieved on Nov. 13, 2014 from: http://www.streetdirectory.com/travel_guide/17047/outsourcing/factors_influencin g_the_outsourcing_decision.html Sullivan, D. (2013). Amazon AWS as an IaaS. Retrieved on Nov. 12, 2014 from: http://www.tomsitpro.com/articles/amazon-aws-paas-iaas-cloud-computing,2-