The use of offshore outsourcing for information system project has a Assignment

The use of offshore outsourcing for information system project has a number of associated issues which may impact on the success - Assignment Example Apart from these aspects, there are also certain other factors that have direct impact or directly led to success or failure of projects related to outsourcing. Hence, a comprehensive understanding regarding offshore outsourcing having its impact on the success or the failure of the projects has been illustrated in the paper. Keywords: Offshore Outsourcing, Information Technology, Vendor Management, Business activities, Outsource Partner, Information System. 1. Introduction In the modern day business scenario, where the competition level has become immense among the companies, there is always a need to align business with advanced technological advancements up to the optimum level. This aspect ensures that the organisations could be able to attain superior competitive position as compared to their major competitors in the global market. Among the various approaches companies adopt in modern day business, the aspect of offshore outsourcing can be considered as the most vital one (Beul en & et. al., 2010). 1.1. Background Offshore outsourcing is regarded as the process or the practice of appointing an external organization in order to execute certain fundamental functions of business. In simple terms, it can be explained as a particular approach that the companies undertake wherein they hire people or agencies from other countries to perform certain activities of their respective business. This type of approach cost companies quite less which further impose favourable impact on their business profitability. Apart from the aspect of cost and profitability, this sort of approach is also implemented by business units for executing certain activities that they are not equipped or capable of conducting those actions effectively. It can be viewed that customer call centres are the most common form of offshore outsourcing. In today’s business context, companies spend substantial amounts in outsourcing a few of the core activities of business (Herath & Kishore, 200 9; Sparrow, 2005). Hence, the significance of offshore outsourcing can be depicted from this aspect. 1.2. Aim The principle aim of the paper will be to define and discuss the main issues associated with offshore outsourcing in information system. The paper will also provide a brief discussion regarding the effectiveness as along with the challenges associated with offshore outsourcing. Furthermore, considering all these aspects, a conclusion will be drawn which would depict success or failure of offshore outsourcing in modern day business context. 2. Main Issues in Offshore Outsourcing It is quite apparent that offshore outsourcing is one of the most widely implemented approaches by companies in the modern day business context. However, there are certain issues and challenges associated with offshore outsourcing that places itself to be vital with regard to information systems. These issues are deemed to have impacts on the overall performance of the organizations in one way or the other in their operational activities. Though technologies have become quite advanced, certain risks associated with them principally became a major point of attention for businesses all over (Baldia, n.d.). A few of the key issues associated