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Related Experiment Videos

'Outsourcing' will continue to gain clients.

O Doyle

    Modern Healthcare
    |June 17, 1991
    PubMed
    Summary
    This summary is machine-generated.

    Information systems outsourcing involves hiring external managers for daily software operations, offering cost savings and freeing up internal IT staff for strategic tasks. However, this arrangement is not universally suitable for all organizations.

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    Area of Science:

    • Information Technology Management
    • Business Operations

    Background:

    • Outsourcing information systems (IS) involves delegating daily software operations to external providers.
    • Key attractions include potential cost reductions and reallocation of internal IT expertise.

    Purpose of the Study:

    • To analyze the advantages and disadvantages of information systems outsourcing.
    • To provide insights for organizations considering outsourcing IS operations.

    Main Methods:

    • Review of common outsourcing arrangements.
    • Analysis of financial and operational benefits.
    • Identification of potential drawbacks and risks.

    Main Results:

    • Outsourcing can lead to significant savings on hardware and in-house technical staff.

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  • Internal IT personnel can be redirected to focus on software enhancement and innovation.
  • Potential disadvantages may impact suitability for certain business contexts.

    • Conclusions:

    • Information systems outsourcing presents a strategic option with clear financial and operational benefits.
    • Organizations must carefully weigh the pros and cons to determine if outsourcing aligns with their specific needs and goals.