What’s the true cost of outsourcing IT departments? essay sample


Digital technologies have spread worldwide so that outsourcing became very appealing. The IT market is growing fast due to the companies that move their departments abroad. With the current tempo of growth, the industry is suspected to exceed $1 trillion in the next couple of years. Placing IT services in the offshore made domestic American companies lose their positions to some extent. Moving IT jobs overseas is a new trend which tends to work effectively so that while investing fewer costs in the process. Nevertheless, a certain part of the market beware extensive outsourcing because of its hidden threats.

Running domestic and outsourced department are two different things. While internal staff works closely with the management, it is always easier to change plans even if the work has already started. With the outer staff, such situation drags additional expenses for things which are not outlined in the contract. IT is a complex area which continually changes. Qualitative outsourcing requires firm objectives which can be put in the contract. Constant adaptation and modification are hardly possible so that companies which have not defined a clear strategy are likely to pay in excess for outsourcing IT.

Unexpected demands which were not prescribed by the contract may cross out all the advantages of moving IT department to offshore. Certainly, rewriting contracts takes time, and an external company is likely to demand a fee for the deviation. Thus, domestic organizations end up paying extra money for additional work. But how so many companies have gone so far with outsourcing? Perhaps, certain projects are more suitable for outsourcing than the others. Therefore, companies shall think twice before trying to cut their spending with outsourcing IT.

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