The Outsourcing Dilemma

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Lupe H


Date added:

December 4, 2013








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7 / 1955


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As with any decision, it is good to face it with facts and without prejudice. This work shall discuss factors that help determine the answer, risks, benefits, cost analysis, and implications to the business. Prevalence of outsourcing How prevalent is outsourcing of IT function? Is it true that outsourcing in US companies primarily sends work to foreign countries? According to a Culpepper Compensation and Benefit Survey of 68 science and technology companies, 81 percent of companies surveyed outsource some IT function, while none of the companies did everything in-house and only 5 percent outsourced all IT function (Culpepper, 2007)...
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The following table from the survey results shows the amount of domestic and foreign outsourcing (Culpepper). This survey clearly indicates that outsourcing is prevalent, with prevalence to outsource to domestic service providers. The Gartner Group estimates that outsourcing will be a 50 billion dollar industry by the end of 2007 (Singh, 2006)...
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