The And Maintenance Of Information Systems Essay

1210 Words Dec 16th, 2015 5 Pages
With the development of information technology, more and more enterprises begin to use IT for their production and management services. The establishment and maintenance of information systems has become an important part of corporate activity; however, the company 's resources are limited. The majority of enterprises, especially small and medium enterprises do not have the capability of independently develop and maintain their information systems at a high level (Ketler & Walstrom, 1993).

Outsourcing is when a company purchases a service from another company instead of performing it in-house. Information system outsourcing refers to the practice of shifting one or more IT-related activities to an outside firm (Schwarz, 2014). Nowadays, so many companies are outsourcing their information system. This trend has increased so rapidly for the past 25 years. However, the success rate of information system outsourcing is still low (Gonzalez, Gasco, & Llopis, 2015). According to the Aberdeen Group, almost half of outsourced projects fail to meet expectations.

BACKGROUND
Advantages
Most companies outsource everything but the core business. Outsourcing makes it easier for companies to focus on their basic competences. Routine activities are very time consuming, and by outsource those activities allows companies to devote their time to strategic issues (Gonzalez, Gasco, & Llopis, 2010).

Companies outsource to prevent becoming technologically obsolete without making large…

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