Outsourcing

Critique the Author(s) Conclusions or Propositions (Agree or Disagree)

Agree:

1. Our group agrees that outsourcing IT activities offshore are engaged in many organizations in various degrees and also for the reason such as cost reduction, shortage of IT talents, and quality and tax incentives among others. However, without a thorough assessment of various risks involved in offshore outsourcing of IT activities, any benefit may be offset by significant losses due to various risk factors and missed opportunities

2. The author identified the risk factors of outsourcing are outsourcing contract, privacy and security, decision process, outsourcing scope, diminished technical returns, hidden cost and lost of IT expertise.

3. Our group agrees that the surge of IT outsourcing is very likely to continue for a foreseeable future particularly when the US enterprises are under unprecedented and intense pressure to reduce development costs and enhance operational efficiencies for the purpose of showing favorable short-term financial results.

Highlight the key lesson learned:

1. One of the purposes of outsourcing is enhanced organization to focus on their core competency and delegated the non-core competency job to third party company which had the expertise to free up the manpower resources.

2. Outsourcing seems like a global trend for big organization to reduce the cost, but there are many factor and pitfall to avoid which may need to take into consideration in order to success.

3. The primary success factor of outsourcing is the organization must be clear about the vision of outsourcing, following by properly planning and take seriously the risk mentioned by author.

4. There are many organizations in US outsourcing the business in offshore especially IT. And yet, there is an up trend of outsourcing of offshore IT due to the purpose of showing favorable short-term financial results.

Suggestions on How to Improve the Author (s) Point:

1. Our group suggested that...