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