outsouring risks and rewards matrix

“A short literature review on the ‘risks’ and ‘rewards’ of IT outsourcing to an organisation”.

Table of contents

1. Introduction………………………………………………………………………… p.2

2. Outsourcing………………………………………………………………………… p.2

3. IT Outsourcing…………………………………………………………………….. p.2

4. Risks associated with outsourcing…………………………………………………. p.3

5. Rewards associated with outsourcing……………………………………………… p.5

6. Solutions to Minimise Risks …………………………………………………….... p.6

7. Conclusion………………………………………………………………………… p.7

8. References………………………………………………………………………… p.8

1. Introduction

Over the years, Information Technology (IT) has grown and continues to grow rapidly. IT improves an organisation 's day to day work process, strengthens their competitive advantage and increases business value both effectively and efficiency. Many organisations are struggling with successful IT management of this relatively new function. Shortage of staff with necessary skills; demands for security; uptime applications being essential; have many organisations turning to outsourcing IT in order to reconcile these challenges. (DiRomualdo and Gurbaxani, 1998). This paper will identify some of the risks and rewards to an organisation when outsourcing IT. Section 2 of this paper, will define outsourcing. Section 3 will define and acknowledge IT outsourcing. Section 4 will identify the rewards associated with IT outsourcing. Section 5 will identify the risks associated with outsourcing and Section 6 will suggest solutions to minimise risks. The method of research carried out to support this literature review is composed of desk top research, with analyse of numerous articles, journals, websites, blogs and vendor reports. As this is a short literature review, some areas will be discussed briefly.

2. Outsourcing

Outsourcing is simply defined as ‘consisting in

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