Sample Thesis Paper
Outsourcing may have become an option that is being adopted by organizations with much higher frequency now than it was being before; however, the need for successful and productive outsourcing has led to the development of numerous methodologies that are implemented before the actual process of outsourcing begins (Tho 2005). These planning techniques are designed to allow a firm to identify the departments that merit outsourcing and the degree to which the operations of such departments should be outsourced. With respect to specifically outsourcing Information Technology needs, the scenario takes on an even more complex form because of the technical intricacies that are associated with Information Technology. In a case such as this, the degree of technical expertise that the outsourcing destination holds and any opportunity cost that the firm shall have to pay becomes all the more necessary to analyze before any outsourcing can be done.
It is essential to highlight here that outsourcing should not be confused with subcontracting in any manner since outsourcing incorporates the aspect of significant restructuring of business activities on the part of the firm that is choosing to outsource whereas subcontracting requires that the organization has to perform almost no restructuring at all (McIvor 2005). It was not until the latter half of the twentieth century that outsourcing was formally recognized as a strategy that could assist firms in saving and making more profits (Hira 2005). Firms that had no internal competence in a particular area but required the related services all the same began to actively seek out their options for outsourcing (Bragg 2006). Almost immediately firms began to outsource their accounting, human resources, data processing, internal mail distribution and security needs in an effort to cut costs and companies began to emerge to deliver the much demanded outsourcing solutions (Greaver 1999). The core of the concept was that it was not necessary to own a resource any more if benefit was to be derived from it when specialized benefits could be attained at lesser long run costs. The core product became this particular relaxation that outsourcing offered (Burkholder 2006).