Information Technology Reference
In-Depth Information
Table 2. List of outsourcing benefits
Benefits (and references)
Description
Focus on core business functions.
(Accenture; Capgemini; Deloitte, 2005; Gonzalez et al.,
2005c; Gonzalez et al., 2006a; Griffiths,1999; HP; IBM; IDC,
2004; IDC, 2005; Kakumanu & Portanova, 2006; Novabase;
Prisma; PT SI; Silva, 2002; Varajão, 2002).
Top management greater attention and dedication to the organization stra-
tegic areas by liberating the organization from time, human and financial
resources consuming areas.
IS/IT service levels assurance.
(Accenture; Capgemini; Deloitte, 2005; Gonzalez et al.,
2005c; IDC, 2004; IDC, 2005; Silva, 2002).
The organization service levels assurance of the information and technology
systems by the existence of a contract.
IS/IT risks sharing.
(Deloitte, 2005; Edinfor; Griffiths, 1999; IDC, 2005; Kaku-
manu & Portanova, 2006; PT SI; SAP Portugal; Silva, 2002;
Varajão, 2002).
Information and technology systems risks sharing or transferring to a third
party by contractual guarantee.
Access to highly skilled resources.
(Accenture; Deloitte, 2005; Griffiths, 1999; HP; IDC, 2004;
IDC, 2005; Kakumanu & Portanova, 2006; Prisma; Silva,
2002; Varajão, 2002).
Access to highly skilled information and technology systems resources.
Costs reduction.
(Accenture; Capgemini; Deloitte, 2005; Gonzalez et al.,
2005c; Gonzalez et al., 2006a; Griffiths,1999; IBM; Kaku-
manu & Portanova, 2006; Novabase; Prisma; PT SI; Silva,
2002; Unisys; Varajão, 2002).
To acquire the same information and technology systems services with a
lower cost than internally.
A higher control and accuracy over the IS/IT perfor-
mance and costs.
(Accenture; Griffiths, 1999; IDC, 2004; IDC, 2005; Prisma;
Varajão, 2002).
A higher control and accuracy over the IS/IT performance and costs by
the existence of a contract.
Improvement on Return on IS/IT Investment.
(HP; SAP Portugal; NextiraOne).
Increase or early return on investment made by the organization on infor-
mation and technology systems.
Higher organization productivity.
(Accenture; Capgemini; SAP Portugal).
Higher organization productivity through a higher IS/IT performance.
Improvement on IS/IT management efficiency.
(HP; Varajão, 2002).
An organization earns a more effective information and technology systems
management.
Increase in organization flexibility.
(Deloitte, 2005; Edinfor; IDC, 2005; Gonzalez et al., 2005c;
Varajão, 2002).
The organization increases its ability to respond to market changes through
a simplified organic structure, gain of effectiveness and a IS service level
improvement.
A better adjustment of human resources needs.
(Kakumanu & Portanova, 2006; Varajão, 2002).
Held up by the Provider, the organization gains a better ability to adjust its
internal human resources needs and face working fluctuations.
Higher IS/IT security and reliability.
(IDC, 2004; Unisys).
Higher information and technology systems security, like a better immu-
nity against external attacks and a better access management, and higher
reliability on its information and technology systems, as low failure rates
or inoperability.
Simplification of the organic matrix.
(Deloitte, 2005; IDC, 2004; IDC, 2005; Varajão, 2002).
The organic matrix simplification by transferring resources to the Provider.
Achievement of a standard and even organizational
structure.
(Accenture; Capgemini; Deloitte, 2005; IDC, 2005).
Achievement of a standard and even organizational structure by the
generalized adoption of best practices and decrease of hardware and ap-
plications redundancies.
Permanent access to up to date technology.
(HP; IDC, 2004; Gonzalez et al., 2005c; Gonzalez et al.,
2006a; Kakumanu & Portanova, 2006; Prisma; Silva, 2002;
Varajão, 2002).
Permanent access to up to date technology through the constant technologi-
cal evolution performed by the supplier.
Cash flow improvement.
(HP; IDC, 2004; Varajão, 2002).
Cash flow improvement of the organization due to the acquisition of
information and technology systems assets by the Provider.
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