Assalamualaikum My Dear Bloggers,
Rumors have passed by my class saying that blog will be reviewed by this week, I was thrilled and scared at the same time because I haven't really complete 100% of this blog yet. When I meet my lecturer earlier like 10 am just now, she mention that the blog will be reviewed during study week which is 26th March 2017, A relief just inhaled in me, although this would be my last academic post, I hope this blog would be a prolonged study for those whom are interested in Business IT.
The last chapter.....
Rumors have passed by my class saying that blog will be reviewed by this week, I was thrilled and scared at the same time because I haven't really complete 100% of this blog yet. When I meet my lecturer earlier like 10 am just now, she mention that the blog will be reviewed during study week which is 26th March 2017, A relief just inhaled in me, although this would be my last academic post, I hope this blog would be a prolonged study for those whom are interested in Business IT.
The last chapter.....
OUTSOURCING
IN
THE
21st
CENTURY
Basically in this chapter, you will study mainly on OUTSOURCING
What is Outsourcing ?
It is an arrangement which one organisation provides a service or services for another organisation that chooses not to perform them in-house.
In conjunction with that, what is Insourcing ?
A common approach using the professional expertise with in an organisation to develop and maintain the organisation's information technology systems.
Why does a company outsources?
- Tap outside sources of expertise.
- Concentrate resources on core business.
- Reduce head count and related expenses.
- Eliminate the need of reinvest in technology.
- Reduces costs.
- Better manage the costs of internal processes.
What are the outsourcing projects involved?
- Onshore outsourcing
Engaging another company with in the same country for services.
- Nearshore outsourcing
Contracting an outsourcing arrangement with a company in a nearby country.
- Offshore outsourcing
Using organisations from developing countries to write code and develop systems.
What are the factors drives the outsource projects?
- Core competencies
Many companies have recently begun to consider outsourcing as a means to fuel revenue growth rather than just a cost-cutting measure.
- Financial savings
- Core competencies
Many companies have recently begun to consider outsourcing as a means to fuel revenue growth rather than just a cost-cutting measure.
- Financial savings
It is typically cheaper to hire workers in China and India than similar workers in Malaysia.
- Rapid growth
An organization is able to acquire best-practices process expertise. This facilitates the design, building , training , and development of business processes or functions.
- Industry Charges
High level of reorganization across industries have increased demand for outsourcing to better focus on core competencies.
- The Internet
The pervasive nature of the internet as an effective sales channel has allowed clients to become more comfortable with outsourcing.
- Globalization
As markets open worldwide, competition heats up. Companies may engage outsourcing service providers to deliver international services.
Non-core business functions outsource industries
- Banking & Finance
Checks electronic payment processing , credit report issuance etc.
- Insurance
Claim reporting and investigating.
- Telecommunications
Invoice and bill production.
- Health care
Electronic data interchange.
- Transportation
Ticket and order processing
- Government
Loan processing
- Retail
Electronic payment processing.
The benefits of outsourcing.
- Increased quality and efficiency
- Reduce operating expenses
- Outsource non-core processes
- Reduce exposure to risk
- Economics of scale, expertise, and best practices
- Access to advance technologies
- Increased flexibility.
The challenges in outsourcing includes
- Rapid growth
An organization is able to acquire best-practices process expertise. This facilitates the design, building , training , and development of business processes or functions.
- Industry Charges
High level of reorganization across industries have increased demand for outsourcing to better focus on core competencies.
- The Internet
The pervasive nature of the internet as an effective sales channel has allowed clients to become more comfortable with outsourcing.
- Globalization
As markets open worldwide, competition heats up. Companies may engage outsourcing service providers to deliver international services.
Non-core business functions outsource industries
- Banking & Finance
Checks electronic payment processing , credit report issuance etc.
- Insurance
Claim reporting and investigating.
- Telecommunications
Invoice and bill production.
- Health care
Electronic data interchange.
- Transportation
Ticket and order processing
- Government
Loan processing
- Retail
Electronic payment processing.
The benefits of outsourcing.
- Increased quality and efficiency
- Reduce operating expenses
- Outsource non-core processes
- Reduce exposure to risk
- Economics of scale, expertise, and best practices
- Access to advance technologies
- Increased flexibility.
The challenges in outsourcing includes
- Contract length
- Confidentiality
- Scope definition
Thank You
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