Impact of IT Outsourcing and Off-shoring on Companies Research Paper

Impact of IT Outsourcing and Off-shoring on Companies - Research Paper ExampleImpact of IT Outsourcing and Off-shoring on CompaniesInformation engineering science is an important factor in the modern world given the advance in technology. It helps firms innovate and ca-ca high quality products that meet customer needs and demands. Due to changing business environment, firms beget constitute it necessary to reduce operating embodys while exploiting the comparative advantages of human IT skills offered by other countries (Manaschi 87). Therefore, companies have opted to outsource critical IT skills from other firms from other nations that are endowed with the expertise. In spite of the benefit of cost reduction and improved operations, IT outsourcing poses security and generic risk issues to the firm (McKendrick 130). If these issues are well managed, the outsourcing firm is possible to benefit through increased innovativeness and high product quality that could positively improv e customer merriment hence increasing customer loyalty. This study examines outsourcing and explores outsourcing as applied in IT organizations.Outsourcing is the act in which a company or an organization pays another firm to produce goods or offer services on their behalf (Blokdjik 98). In many cases, the company could have produced the goods or offered the service themselves but sometimes it involves higher costs. Off-shoring on the other hand is a business process that companies use when they decide to relocate their operations to tear down cost locations, mainly overseas.