Impact of IT Outsourcing and Off-shoring on Companies Research Paper

Impact of IT Outsourcing and Off-shoring on Companies - Research Paper Example Impact of IT Outsourcing and Off-shoring on Companies Information technology is an important factor in the modern world given the advance in technology. It helps firms innovate and produce high quality products that meet customer needs and demands. Due to changing business environment, firms have found it necessary to reduce operating costs while exploiting the comparative advantages of human IT skills offered by other countries (Manaschi 87). Therefore, companies have opted to outsource critical IT skills from other firms from other nations that are endowed with the expertise. In spite of the benefit of cost reduction and improved operations, IT outsourcing poses security and generic risk issues to the firm (McKendrick 130). If these issues are well managed, the outsourcing firm is likely to benefit through increased innovativeness and high product quality that could positively improve customer satisfaction hence increasing customer loyalty. This study examines outsourcing and explores outsourcing as applied in IT organizations. Outsourcing is the act in which a company or an organization pays another firm to produce goods or offer services on their behalf (Blokdjik 98). In many cases, the company could have produced the goods or offered the service themselves but sometimes it involves higher costs. Off-shoring on the other hand is a business process that companies use when they decide to relocate their operations to lower cost locations, mainly overseas.

Bristol University SWOT and PEST Analysis Essay

Bristol University SWOT and PEST Analysis - Essay Example Another strength is the financial stability and management. According to the annual records of the Bristol University in 2014, the university’s the Bristol’s financial statement shows cash flow generation of 10.1% in 2013/2014. This is a strong evidence on the university’s strong financial stability. The strong financial stability and management enhances Bristol University’s ability to invest in the innovation while also supporting the other areas of the growth (Shattock, 2015).   Additionally, the university’s simplicity in terms of scoring and structure makes it easy in charting the scores of the individual over time. This is specifically important in case studies. Other strengths include; cultural and linguistic diversity of the students/city/staff and the increasing international, responsive to change, increasing amount and the quality of the applied research, and home student recruitment and demand (Dyson, 2000).WeaknessesThe tightly constrai ned city center site where the Bristol University is located makes it hard for it to meet the current requirements for the space efficiency. This makes it hard for the new buildings to fit in. Another weakness is the university’s poor adaptability of the processes to changes and demand, and the unnecessary bureaucracy (Clark, 2014). This makes it hard in securing the lean processes in the organisation. Other weaknesses include; few endorsements, strains of expansion, and lack of the external clout.The increased international recruitment to Bristol University.