Outsourcing IT services is considered a valid organizational strategy that likely will continue, in one form or another. The obvious advantage to any business lies in potential cost savings, ideally leveraged to result in greater profits. It is tough to argue against a competitive business finding a way to legitimately increase profits. The savings may come from applying simple differences in pay scales as well as avoiding the expense of retooling or training in-house staff on new tools and technologies - such extravagances then become someone else's concern. Issues certainly exist with outsourcing IT activities offshore. Beyond simple security concerns that naturally arise with any work performed outside the corporate firewall, offshore outsourcing brings language and cultural barriers to the project management table. Additionally, the simple time zone differences become a larger-than-life factor of daily task administration.
As with every other business option, risks are real while presumed panaceas are actually chimeras. Outsourcers may be overselling their internal skills; inexpensive offshore expertise may really be on-the-job training as the outsourcers work through each new task for the very first time. Disruption can occur as work is transferred. External customers may fear what the changes will bring. Internal staff may believe that outsourcing threatens their future or their job satisfaction. At the very worst, unscrupulous outsourcers may siphon off an organization's intellectual property in a rush to provide industry-wise knowledge to other organizations from whom they wish to obtain outsourcing work.
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