Cmgt 442 Week 4 Individual Assignment Outsourcing Risks Essay

1272 Words Aug 24th, 2013 6 Pages
Outsourcing Risks
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Outsourcing Risks

Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
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Because of this, the organization must ensure that their network is available at all times and functions as designed. Network support includes many areas such as phone services, Internet, and other network and web-based applications. Network management requires a dedicated specialist to ensure its performance.

Outsourcing network support has many advantages as well as disadvantages. One of its advantages includes not having to hire an individual to perform said activities. In this case, the organization can simply outsource experienced specialists to handle their network support operations. This will reduce cost of hiring, as well as improving the quality of work (Bragg, 2006).

One biggest problem in outsourcing network support is the availability of the support. Organizations may encounter downtimes if support cannot be had immediately. The most important thing to consider is to ensure the vendor is trustworthy and capable of meeting or exceeding expectations. The price should be a factor but it must be incorporated with the required range of services such as integration, implementations, and other services (Rabinovitch, 1997).

Outsourcing has many risks and rewards. Outsourcing can improve and reduce operating costs, improve task focus, gain access to available services and technology, maximize restructuring benefits, and make capital funds available (Corporate Computer Services, 2012). These rewards also come with the risks

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