Johnny Ch Lok

Service Market Development Johnny Ch Lok

Information Technology Outsourcing service brings organization IT benefitIn any organization information technology department, information system operations remain the predominant function outsourced, other functions are also being performed by external service providers and the relationship is between outsourcing and certain demographics: size, industry is formation intensity. The results suggest that system operations remain being performed by external service providers. Further, industry and information intensity has some influence on the extent of outsourcing of certain functions. The first reason is cost reduction, trying to remain competitive and up-to-date is becoming a financial burden to many organizations. This is true particularly in fields, such as banking and financial services, health care and manufacturing. Hiring outsiders to handle part or even all of its information system often helps an organization to provide better services and maintain a competitive advantage. The information technology industry choice of outsourcing factor is related to size, industry type and information technology. The second reason is technological and/or human resources in the management of the information technology infrastructure skill improvement. The information technology department outsourcing service to external service provider, includes the degree of internalization of technological resources and the degree of internalization of human resources. Some economists defined internalization of outsourcing service is as ownership is by the focal organization which takes on full control with profit and loss responsibility. Also who define outsourcing is as involving a significant use of resources, either technological and/or human resources, external to the organizational hierarchy in the management of the information technology infrastructure. So the information technology external service providers includes: applications development and maintenance, systems operations, networks/telecommunications management and user computing support, system planning and management purchase of application software, but excludes business consulting services, after-sale vendor services and the lease of telephone lines etc. outsourcing services.