Financing Organizational Technology

FINANCING ORGANIZATIONAL TECHNOLOGY

TUI University

ITM 432 Principles of Finance and Financial Info System

As an organization relies on Information Technology (IT), most business has started outsourcing this asset. Outsourcing is contracting with outside vendors or person to execute a particular function. Nearly every business outsources in some way. Usually, the task being outsourced is considered non-core to the company. The outside firm providing the outsourcing service is a third-party providers, or service providers. Even though outsourcing has been around as long as work field has existed, companies began employing the outsourcing model to carry out slim functions, such as data entry, application maintenance, payroll and billing.

Company have move toward outsourcing this service for many different reason. Managers have recognized how expensive maintaining state of the art technology is. The quick progress of information technology can rapidly make IT skills obsolete. By the time a company invest in and trains its staff, the technology might no longer be state of the art.

The government agency was mentioned a lot in the assigned readings. Been part of the military give me the opportunity to see how portion of the government makes its IT decisions. As far-off shareholders and the value of a company, outsourcing may or may not significantly increase or decrease shares. Investors pay meticulous attention to the type of IT company, and the kind of outsourcing in order to develop good reasoning. The question was ask; are standard financial investment information and criteria are all that is needed to effectively evaluate IT outsourcing decisions? My answer has to be yes and no. There are numerous steps implicated when resorting to outsourcing and a strong management is significant. When invested money is spent on an external company and the company fails, people loss money, and will seek your company for answers.

The government works a slightly...