Information System Outsourcing Essay Example | Topics and Well Written Essays - 500 words

Information System Outsourcing - Essay Example It is easier so outsource the development of information technology and systems and workers do not require complex infrastructure to begin their work. As the outsourcing market is highly competitive internationally and has a high level of mobility, it poses a certain degree of threat that major operations might be to other countries that are better able to provide a stable supply of skilled workforce. China has replicated the Indian model, is taking a more sustainable approach towards creating a stable flow of skilled workers and seems determined to grab a substantial market share in the outsourcing business. IBM is one successful business that has been able to retain a large pool of highly skilled labor in India. Its labor force has increased substantially from thirty-five thousand employees to well around sixty thousand headcounts. Its success is deeply rooted based on its ability to pay premium wages to its employees based on its international standing and its ability to charge its clients a premium based on its brand image. British Petroleum similarly outsourced its entire information technology system development program without enough geographical diversification and found after a year that none of the information technology firms in India was able to provide any satisfactory program for implementation. In conclusion, it is clear that outsourcing has its benefits for both parties but also adds significantly to the risks. A better strategy for outsourcing is the use of multi-sourcing to avoid risks related to non-performance and delays.