what is outsourcing in information technology

Outsourcing has been implemented as its advantages have given better growth to the companies. It saves time and is cost effective, so company can achieve the best in less time which results into higher productivity.And if everything is taken of care of by your outsourcing partner, one can easily focus upon their core competencies and add value to their product line or services.But as it is rightly said that there are pros and cons for everything, it has some negative impacts as well on the business. The most important affect is that there could be quality issues if the outsourcing partner is not maintaining the standards and since the data remains confidential, it’s likely to be at threat because of an intervening outsourcing partner. But for that every company has own set of documents like NDA and CSA in place with all the necessary terms that are being mutually agreed upon so that there will be transparency during the entire outsourcing relationship.

In the telecom industry, outsourcing is usually referred to as ‘managed services Provider’ and includes mainly the operational functions such as network operations and management, along with the hosting of services by third parties. Earlier the network itself was seen as core business, and this view is still widely held, but increased competition from new players such as media owners, cable companies and internet service providers has given a new definition to the term ‘managed services’ that now covers a wider range of possibilities.

Outsourcing services has gained a prominent place in the current telecom industry as most of the telecom companies now prefer to outsource all its non-core functions and concentrate mainly on its niche area of services. The idea behind the same was mainly to fight tight budgets, limited resources in today’s competitive market and above all to get the best results with minimum investment. Telecom outsourcing also has another purpose of filling the skill set gaps. A vendor can do order management or billing tasks in a much efficient way as he has experience and economy of scale which a telco might be lacking.

Telecom companies that choose to outsource their daily operations have the advantage of keeping 24-hour customer service and technical support lines open. These lines are operated with skilled professionals who are in different time zones than the customer calling in the complaint. This acts as an advantage to the company in order to keep fresh and rested workers manning the phones on a near constant basis.

Publisher: fltcase

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