globusjournal

For more than ten years, experts in the field and academia have discussed the dangers of outsourcing IT. These can have both immediate, local implications (such failing to implement a scheduled desktop upgrade, for example), as well as future, longer-term adverse impacts on organisational performance. Their size and influence on the organisation will vary. Service degradation, which has an impact on how well an organisation performs; Organisational disruption as well as additional costs associated with poor transition; risks related to the vendor, such as the vendor overstating its capabilities, the vendor heading towards of business or leaving that market, the vendor not safeguarding records, the vendor being unresponsive; and “lock in” (in which the purchaser possesses no choice). Inflexibility (caused by contractual restrictions or prohibitively expensive amendment costs); Diversion of managerial focus and funds (keep away from core business); Downstream organisational declines (loss of skills as well as tacit knowledge – and the ability to exploit IT as a business advantage; diminished innovative capacity; lack of intellectual property); Impacts on competitive edge.

Keywords: Risk, Uncertainty, IT, Outsourcing.