Outsourcing has made great controversy within a number of industries lately. Essentially, outsourcing is "the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees" (Conjecture Corporation, 2012). Yet, this movement is not as easy or pain free as it sounds. Yes, outsourcing can help keep costs down and allow a company to remain globally competitive; however, outsourcing can also cost

Outsourcing IT Services Some History The information technology outsourcing industry was established in 1962 by H. Ross Perot, who left IBM to launch Electronic Data Systems (EDS) in Dallas, Texas. EDS gets proper respect for developing most of the practices that are essential to the performance of the industry today: the management and integration of complex systems, client/server transaction processing, and private networks transmitting data, video and voice in digital format. The

Outsourcing Alternatives There are three alternatives in this situation. There is a re-org that has been proposed for the IT department. There is the view of the CIO, which is that no re-org is necessary, so essentially the status quo option. The third option is to outsource the IT department. Compare Outsourcing with Internal Solutions There are advantages and disadvantages to outsourcing the IT department to a third party vendor. The biggest advantage is

Outsourcing is an appropriation of particular business operations to a professional foreign service provider. (Haugen, Musser, & Lovelace, 2009, p. 34) Most often then not, businesses and organizations have trouble handling all aspects of a business process privately or in this case, domestically, and need to seek professional assistance elsewhere. Additionally, some processes do not need permanent in-house professionals, allowing for outsourcing to be the cheaper alternative. Once a job

Contracting officers today must have the skills or competencies required to become the business leaders of the future (Steele 2000)." An article found in the ABA Banking Journal asserts that Chief Information Officers are interested in it outsourcing because companies are able to acquire it skill sets that may not be present at the internal level. In this article Siemers (1995), explains that One of the reasons CIOs believe that

Outsourcing Shipping Management Outsourcing is a process by which an organization takes the services of an external party to perform some of its operations or functions. Outsourcing is also done by shipping firms all over the Globe (Outsource Freight, 2012). Ship owners generally outsource their operations and management functions to the external parties against for a particular period of time and against a specific sum of money (Lorange, 2009). Outsourcing of