IT OutsourcingINTRODUCTIONCompanies are increasingly outsourcing information technology (IT) management for reasons such as concern for cost and quality, lagging IT performance, pressure suppliers, access to specific technical and application skills and other financial factors. factors. The outsourcing solution is acceptable to both large and small businesses as strategic alliances are now more common and the IT environment is changing rapidly. of themes that explain most of the pressures for outsourcing. First, CEO concerns about cost and quality drive outsourcing. The same issues, such as obtaining existing services at a discounted price to acceptable quality standards, came up repeatedly. Second, failure to meet service standards may force management to find other ways to achieve reliability. It is not atypical to find a company where cumulative negligence in IT management has ultimately resulted in an out-of-control situation from which the current IT department has been unable to recover. Management may view outsourcing as a way to fix a failing service. Third, a company under intense cost or competitive pressures, which does not view IT as its core competency, may find outsourcing a way to delegate tedious and complicated problems so that it can concentrate Limited management time and energy on other differentiators. Then, several financial issues can make outsourcing attractive. The first is the ability to liquidate the company's intangible IT assets, thereby strengthening the balance sheet and avoiding a flow of sporadic capital investments in the future. Additionally, outsourcing can transform a largely fixed-cost business into a variable-cost business. This is particularly important for companies whose business volume varies significantly from year to year or which are facing a significant reduction in their workforce. THE BENEFITS OF OUTSOURCING Outsourcing has identified many potential benefits. The financial benefits of outsourcing included rapid financing of new systems development and economies of scale and scope. . By consolidating infrastructure through IT outsourcing, a business can benefit from cost reductions in hardware and software licensing, installations and support staff. Outsourcing can also capitalize on an outside supplier...... middle of paper ...... If you don't have experience in partnering activities before, the relationship can develop deep tensions. Changing technologies often change the strategic relevance of IT services to a business. From the customer's point of view, outsourcing a basic service to a third party is very attractive if the price is right. Delegating a company's service differentiator is another matter. The customer who made the initial efficiency decision will judge it differently if they use efficiency criteria later. CONCLUSION: Outsourcing has many positive effects for a business, although it still contains various problems to solve. In the internet age, any business may want to focus their internal staff on migrating to the environment that will support them tomorrow and outsourcing could be one of the best solutions. Furthermore, outsourcing is more about..