Outsourcing is the subcontracting of aspects of a business to an external agency - some companies specialise in provding ICT related solution services to other organisations. EG; Payroll
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Give two reasons why organisations may decide to outsource functions to external businesses?
1. Cost. 2. To improve performace
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How can outsourcing be cheaper?
EG: outsourcing payroll function means less time consuming for management, no need for HR recruitment with specialist knowledge
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How does outsourcing improve performance?
Using the expertise of an exteral company means people within the organisation have access to wider range of expertise than could have been supplied internally - external companies provide adviced any time day or night.
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What is "Offshoring"?
When a company purchases services in one country to be provided in another country
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What are the factors making an offshoring operation successful?
1. Provider must be well establised. 2. Experienced and technically able personnel are employed. 3. Strong management 4. Provider must be flexible to the needs of the client company. 5. Strict standards establised. 6. Service agreement
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What is a service agreement?
A contract between a company obtaining a service and the company providing the service. It specifies the nature, scope, and quality of service that should be produced.
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What is bulk printing?
Specialist companies provide services to bulk print - printing at a much faster speeds with larger volumes of printing. (EG: payoll)
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What is the benefit of bulk-printing?
A company will save the cost of having their own equipment, time, and space
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Give two ways in which we can obtain ICT services from suppliers
1. Contracting 2. Leasing
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What is contracting?
It is a way of obtaining HR, space, or equipment. Contracts can be short term (eg; to carry out a specific task) or long term (payroll function)
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What is leasing?
A lease is an agreement where one person or organisation hires a particular asset like ICT equipment. It avoids the capital of owning it - and equipment is likely to go out of date quicikly
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What is an Inventory?
An itemised category of all hardware held by an organisation.
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Give 6 internal resources that need to be managed
1. Hardware Resources 2. Software Resources 3. Communication resources 4. Consumables 5. Facilities & Power 6. People
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What are consumables?
The regular minor items that need to be purchased for an ICT system. (EG: paper, ink toner, staples)
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Other cards in this set
Card 2
Front
Give two reasons why organisations may decide to outsource functions to external businesses?
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