Outsourcing can be defined as the process of turning partially or fully an organisation‘s IT services to external entities. Discuss the merits and demerits of outsourcing the IS function in an organisation.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Merits and demerits of outsourcing the IS function in an organisation
Advantages of outsourcing
 Cost control due to fixed prices.
 Greater certainty in long term planning.
 Economies of scale

New skills and knowledge become available.
 Resources employed can be scaled up or down depending on the needs.
Disadvantages.
Risks of information confidentiality/ security
 Loss of competitive advantage- trade secrets.
 Getting locked into an unfavourable arrangements- contracts.

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