Outsourcing, Business And The Alignment Of It With...

Abstract Outsourcing is the notion of the day in today s business world. Outsourcing means to get the product or service on contractual basis from an outside supplier. Now this term is also developing widely in the field of information technology. The small and large scale industries utilise IT outsourcing and business process outsourcing to have the benefits for business like cost reductions, high production and efficient business activities. For the best use of IT outsourcing, there must be well co-ordination between IT and business procedures. This report will flash light on IT outsourcing, business and the alignment of IT with business processes. We will have an idea that How IT outsourcing will impact the business. Introduction:†¦show more content†¦This report will draw all the benefits of the IT outsourcing on the business. Different readings have proven that IT outsourcing has brought the brightest impacts. Sometimes these impacts were negative also. It also depends on the alignment of information technology with the business purposes. The positive sides of these impacts are the cost reduction and the efficient production of the goods and the services. The negative impacts includes improper information transformation, external Costs and cultural limits. Positive impacts of IT outsourcing on the business processes: Silvius (2013) has stated that the most significant effect of IT outsourcing is that it has reduced the cost of manufacturing. Moreover it has been declared that IT outsourcing can reduce the manufacturing cost and time from 60% to 90%. Information systems are also polished by the IT outsourcing. It also helps to promote the business processes and financial exchanges among different companies. To draw best out of the IT outsourcing, it is mandate that the IT must be well aligned with the business plans and strategies of the companies. Due to outsourcing of IT improves business by improving the business IT alignment, along with it governance of the company improves and architecture becomes mature. The relationship between the Service provider and the company is positively influenced by the Attitude and behaviour of the outside company which is providing the services. This has gained high momentum as