Outsourcing Information Technology and Security Essay Example for Free

Outsourcing Information Technology and Security Essay This can be defined as the employment done to another company by an organization for the service provision in information technology or security services rather than the use of the corporate workers in the performance of such a duty. With the growing intensity of commercial activities the concepts of strategic management has been of importance in formulating various structures and economies in the business activity. Managers have consistently understood the role played by external outsourcing. Such is done is the recognition of the economies of scale and economies in the cost factor which the organization would have been affected. The Elite Supercars can be voted in as one of the global organizations where outsourcing has never been compromised. However a deep concern into the principles of economies of cost factor have been put into consideration. Firstly, an importance is attached to the scale of adequacy in terms of levels of ability for the service provider. Since the provision of both the information technology and security services call for technical pursuits from the providers, the choice of service providers has been in recognition of their technical abilities and competencies. Either, the outsourcing activity has still been in evaluation of the cost parameters. Through this activity, the company was to get a relatively lower scale in its costs. However, a scrutiny and evaluation was done by the management in accordance with the cost factors in choosing various clients against their quality of services. The choice of the clients by the company was indeed a compliment of lower costing service sales above high quality service inputs. Above all other factors, the evaluation of the environmental factors in the activity was a factor. However the two choices were complimentarily environmental friendly within the organizational setup With Elite Supercars, outsourcing information technology and security has been important complements in its activities. This is a car manufacturing company with its roots at Singapore. However to it, outsourcing of the above two corporate factors draws a question of high concern. Firstly, with its increased manufacturing activity, the company had to outsource development of various software useful in the organization’s processes. In the 1st November 2006, the company’s CEO released a press release, where it had contracted the Northern Ferrari Hire for developing an outsourcing program through the web marketing. This was to involve various software on strategic marketing modalities. Perhaps, the impressive sales turn over embraced by the company can be credited to this fact. Through the program, the company is able to adequately provide an attractive package of marketing services to its customers. Through this method, customers have closer relationship with the company where it can adequately communicate with them through the Internet. Suchan, Charles, 2006) Some various examples show the implementation success of this activity. This activity by the organization’s implementation of the program has even driven it to its extended boundaries of its activities. The program was provisional and to a strategy in various accounting components. Firstly, it was a way of optimal costing. As an important tool in an organization, optimal costing implies efficiency in the activity performance. Optimal costing is also seen as the economical method in use of organizational resources. To the Elite Supercars, outsourcing of information technology is a complement of various efficiency-costing benefits. The information outsourcing therefore shows a big success in the company’s costing system where it has obtained various efficiencies related to the program. Through use of an external supply, the organization had various benefits ascribed to it in terms of the costs. Like an external contract, the activity itself was less costing than the use of its own staff. Either, this activity by its own required a high scale of technological know how about it. In regard to its inexperienced employees, outsourcing is still fundamental in the implementation success of the program. Elite Supercars was not strong and able enough to provide the set of competent staff allied to this facility. Either well, to the organization, the provision of a set of technical staff on information technology was not economical enough in relation to the cost factor of the broad organizational activity. However to the company, perhaps the greatest benefit from the project was the consequent development and growth of its sales turn over. Since the enactment of program, the company has continued to experience high sales volume. Above this, there have been various efficiencies in terms of the marketing factor. There has been a continued reduction in the cost of marketing through the various effecienciess and economies of scale borne out of the process. (Cantwell, Alfonso, Granstrand, 2004) Outsourcing, by the Elite Supercars on security has been fundamentally one its management activities. From the past experience in insecurity and theft of its cars at their manufacturing site, the company had to seek refuge of finding a storage facility for its cars. To the company, it chose to use the facility of storage that had been constructed by Dutch Authorities. With the same storage facility, the organization experiences lower cases of theft (if any) to its highly priced cars. Formerly, the increasing state of loss of cars had become a problem which threatened the company in being out of the industry. It had continued to get higher levels of losses through the theft of its cars. At one level therefore, the facility offered cost saving attributes through reduced scales of care theft. (Domberger, 1998) The move to use the storage facility provided by the Dutch Authorities was perhaps one of it strategic management goals. Construction of its own facility was a factor seen as increasing the level of its cost factor consequently. The construction of its own shortage facility was to involve a high level of cost factor compared to the level of its operational capacity. This is an attribute of success in the implementation of the program. Since prevention of car from theft was still a factor of consideration, the opportunity cost of not constructing its own facility was basically to be through the use of another facility. Otherwise, the loss that could accrue from the loss of the cars through theft was far beyond the cost outlay got from the payment to the external shortage. Therefore, the security outsourcing program was itself a factor of high attribute in the success of the company’s activities. To the current period, security problem is no longer an issue and the company continues to embrace the broad economies allied to these out sources. Broadly therefore, outsourcing activity by the company shows a strategic management tool towards the organization activity. The company embraces the long run benefits of these two programs.