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IT Outsourcing

IT Outsourcing. Dhruv Patel Bill Hays Cindy Steinmetz Will Isom Lindsey Bryan. What is IT Outsourcing?. “… is using outside vendor to create, maintain, or engineer IT architectures and systems …”

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IT Outsourcing

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  1. IT Outsourcing Dhruv Patel Bill Hays Cindy Steinmetz Will Isom Lindsey Bryan

  2. What is IT Outsourcing? “… is using outside vendor to create, maintain, or engineer IT architectures and systems …” • Originally started as a big trend for major companies to hire out side firms to handle and mange their IT departments • Why kept in house • Capital availability • Engineering know how • Tailored to fit • Why outsourced • Cost • Know how increased in the market place • Lot of success with mass production } Almost Like Natural Evolution

  3. What is IT Outsourcing • Currently the big deal is “Offshore” outsourcing • IT jobs moving outside the country • Using firms outside the country for IT needs • Companies opening their own IT departments in different countries to handle IT needs • “Offshore” and “Outsourcing” have become synonymous • Involves all aspects of IT not just some • Development • Implementation • Maintenance/monitoring • Housing • Physical hardware being there • No remote maintenance (dialing in)

  4. What are the jobs involved? • Mostly all aspects of IT • Due to nature of jobs • Some limitations • Hardware troubleshooting • Solution housing hardware offshore as well • Bandwidth increases breaking limitations

  5. How big is the phenomenon? • IT is big money • Lot of money put into IT • Latest way to improve business productivity • In most cases cost vs. benefit ratio high • Now think about cutting costs • Cost cut 15%-60% • No loss of quality • Put both together big deal from business point of view • Expected to grow by 6% annually till end of decade

  6. Why is IT outsourcing growing? • IT still relatively new • New applications discovered everyday • Implementation costs keep going down • Technological innovations breaking down barriers • Bandwidth • Global Infrastructure stability

  7. Predictions 10 Years Ago • Growth not expected • IT thought too volatile to trust to others • Importance not emphasized • Not integrated into business • Potential limited due to technology • Education not thought to be present • Global education lacking

  8. Current Trends • Save money • Relocate to where costs are lower • Integrate education as much as possible • Political effects due to job market • Automation • Security concerns

  9. Future Predictions • Continue to grow until the end of the decade • Predicted of peak then • Growth will still continue, but not at the current rate • Slow down • IT will be incorporated pretty well in almost every aspect of business by then • Job/economical equilibrium will be reached

  10. Global Effect • Biggest player is Asia • India • Philippines • New comer Dubai • Others • Ireland • Israel • Canada • South Africa • Biggest by far is India • Growing rapidly • 8% of GDP • Political reform • Educational reform • Starts in elementary school • Highly based on English • Abundance of educated labor capital

  11. Global Effect • Infrastructure planned around IT • Cities wired • High speed lines coming in on the eastern coast • Flawless integration into city planning • Government control helps planning to benefit economy • Skilled labor • Large supply • Highly educated • Very competitive keeps prices low • Criticized • Low class programmers • Creativity limited • Great for coding • Top five IT firms in Asia all in India

  12. National Effect • Major panic • Loosing jobs • Yes loosing jobs, but because industry growing so rapidly • New jobs created daily • Job still stays within borders

  13. National Effect • Education ramping up • IT education High School • CISCO certification • MCSE certification • Still lagging behind • Political tussling • IT not affected that much • Nature of business no physical exchange • Trade of information and intellectual capital

  14. Questions ? ? ? ? ? ?

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