IT Project Management Assignment Example | Topics and Well Written Essays - 750 words

IT Project Management - Assignment Example Besides being a way of reducing costs for organizations, outsourcing is a crucial aspect of growth and a strategic service. Basically, outsourcing comprises of reassigning at least one business process to an external vendor or service provider. Often, organizations outsource specific functions that were originally part of organizational departments. The specified functions focus on business core competencies with good and clear reasons driving such actions. The four key reasons for outsourcing are outlined by Axelrod. Cost efficiency is associated with saving money and reducing operating costs. Outsourcing grants organizations access to world class skills and capabilities that enable them to tap from the best examples within their industry translating to low costs and high quality. Additionally, reduction of operating costs eliminate debts, falling profitability, and low expansion opportunities. Secondly, outsourcing allows business to utilize shared knowledge accumulated by the IT s ervice provider over years of experience in the field. Additionally, the service provider has a unique mix of skills and talent that can successfully manage a project, unlike in-house department. Thirdly, outsourcing controls legal risk or improves compliance since the service provider assumes and manages some of the risks of the business. Additionally, a service provider understands the industry requirements in and out and these assists prevent instances of costly mistakes resulting in an agile, dynamic, and flexible business.