The Importance Of ICT Outsourcing

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In order to provide better quality service, some of the organizations prefer to turn over part of the system functions to external service providers. It is because the external service providers have skills and assets to fully utilize the system for performance management and attaining key business indicators. ICT outsourcing was one of it. Technology outsourcing growth has been rapid globally. According to Claver and Gonzales (2002), ICT outsourcing has become a trend to some companies. ICT outsourcing can be defined as make change the perspective of company to focus on more important and core business for better decision–making. The ICT outsourcing strategy is widely related with cutting costs, launching of new business ventures and improving…show more content…
One of the reasons is to added benefit economies of scale, which helped IT outsourcing to be implemented by all level of government. Technical and staffing stresses are the main reasons why governments choosing ICT outsourcing rather than in-house developments. Although these are practical reasons, the fact remains that with outsourcing, in-house skills may never be well-developed and cannot be accepted by internal staff due to the culture of the organization itself. Therefore, it is significance that when government agencies wants to reorganizing the IT function, they must take serious consideration to decide what part of IT function is to be performed assist to meet the goals of the organizations and what part would be appropriate to be…show more content…
As additional information to my academic writing, there are several differences between private and public sectors of ICT outsourcing. According to Lin, there are several differentiation including the decision making process of manner, personnel management, motivation, organization culture and management of information system (2008). In private sector, the motivation about the ICT outsourcing project is generated internally where the decision to outsourcing can be decide by them. It is also the awareness of the staff form the private sector to do better job. Different from public organization, the outsourcing project must be decided by higher level of management. In terms of gaining access to advanced technology and expertise through ICT outsourcing, the private sector sees it as a strategic move, but different for public sector organizations it is often the only option available, as employment regulations in the public sector would not allow hiring IT professionals at competitive salaries (Gantman,

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