What do you mean by IT Outsourcing??

Question

What do you mean by IT Outsourcing??
Is it applicable to the Philippines?

Answer 1

IT Outsourcing is when a company chooses to have their IT call center in a country other than their homebase. For example, a company in the United States closes down their U.S. call center and moves it to another country, such as India. By doing this the company can higher employees for less than what they would have to pay a U.S. citizen. Also in many cases they would not have to provide health and life insurance. In the U.S. it is required that a company offer such benefits to employees.

It is a way for companies to cut back on their expenses, but in my opinion it also lowers the quality of customer service you receive.

Answer 2

"Outsourcing" involves transferring or sharing management control and/or decision-making of a business function to an outside supplier, which involves a degree of two-way information exchange, coordination and trust between the outsourcer and its client. Such a relationship between economic entities is qualitatively different than traditional relationships between buyer and seller of services in that the involved economic entities in an "outsourcing" relationship dynamically integrate and share management control of the labor process rather than enter in contracting relationships where both entities remain separate in the coordination of the production of goods and services. Business segments typically outsourced include information technology, human resources, facilities and real estate management, and accounting. Many companies also outsource customer support and call center functions, manufacturing and engineering. Consequently, a debate has ensued concerning the benefits and costs of the practice as well as how to categorize it as a phenomenon.

Answer 3

Yes, it's applicable to the Philippines. Means that jobs could be handled in the U.S. are being given to other countries to save on labor costs. Can also simply mean utilizing any source outside of your company to handle any IT issues.

Answer 4

IT outsourcing is receiving support for your automation from an outside agency, e.g. microsoft, sun microsystem, etc... It also can mean having the outside agency do all of your IT for you, server capability, hubs and switching, data storage, etc...It is applicable worldwide with the only constraints being internet access or other modern means of communcation.