Problems with Outsourcing

4 Mar

Many aspects of developing and purchasing information systems have now been discussed. Just a little over a week ago i blogged about some of the problems involved with outsourcing information systems. unfortunately I didn’t have time to blog about them all so today i will go through some more problems with outsourcing as stated in the journal by Reyes Gonzalez, Jose Gasco, and Juan Llopis.

in my last blog the last problem i addressed was the problem with securtity. Followeing that there is the problem of irreversibility of the decision.

Irreversibility of the decision

Many companies that outsource get rid of a lot of the infrastructure used to develop information systems. Once this is done it is hard to reverse the decision. It is hard to reverse the decision because high costs involved in the reconstruction of the IS department, the difficulty to attract the necessary staff, and the time required.

Staff Problems

Outsourcing can lead to low morale among employees and a low level of productivity as the IS department will have to be reorganised and some employees may be transferred and position changed.

Possible opposition from their staff

Similar to the above point staff may not react well to outsourcing. Outsourcing poses a threat to employees jobs and they therefore may oppose the decision

Source: http://www.waset.org/journals/ijhss/v4/v4-3-24.pdf

 

If there is anything in particular you would like me to blog just let me know.

Thanks🙂

4 Responses to “Problems with Outsourcing”

  1. sad111413042 March 8, 2013 at 12:13 pm #

    Really good blog🙂 Love that theyre easy to read and have non-jargon language, really helps me to understand whats happening in this sector. Keep up the good work😀

  2. sad111302881 March 8, 2013 at 5:32 pm #

    Really good blog, I’ve enjoyed reading all your blogs will be making notes on these and using them in may😉

  3. sad109566511 March 8, 2013 at 7:45 pm #

    really good blog🙂 very well laid out which makes it easier to read and understand,will be very helpful in April for exam revision!!:)

    • sad111510567 March 9, 2013 at 1:04 pm #

      Thanks very much! I just find it easier to lay it out this way and hopefully it will entice more people to read it. I’m sure nobody would want to read a long-winded essay on the topic!

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