Discuss how information system outsourcing can provide the organization with both a business solution and asset management

What will be an ideal response?

Answer: Many companies have come to view information system outsourcing as not merely an IS solution but a true business solution. Outsourcing has become a plausible business solution because it allows the organization to focus and put its concentration into its core competencies. This transfer of IS responsibilities can be liberating to the organization, as it frees up more resources to devote to the mainstay of its business efforts. The viewpoint is that a company should be allowed to do what it does best; so the outsourcer is better at IS operations and management, while the organization is better in its areas or core competencies. Many organizations treat outsourcers as business partners, working closely to meet the strategic business objectives of the organization. An additional benefit of IS outsourcing is asset management. Many organizations tie up millions of dollars in their IS efforts, and the attempt to keep up with technological improvements can create a steady drain on cash reserves and other organizational resources. One way to significantly improve an organization's cash position and reduce annual expenses is to sell off IS assets, or lease them to the outsourcing organization. This can have positive benefits for both the organization and outsourcing vendor as well, as it helps the organization with cash and expense management, and can provide an outsource vendor with the equipment (and even people) it needs to properly service its client.