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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