IT OutsourcingINTRODUCTIONCompanies are increasingly outsourcing information technology (IT) management for reasons including cost and quality concerns, slowing IT performance, vendor pressure, access to technical and application expertise special and other financial problems. factors. The outsourcing solution is acceptable for both large and small companies because strategic alliances are now more common and the IT environment is changing rapidly. MOTIVE FOR OUTSOURCE While the mix of factors that increase the likelihood of outsourcing varies widely from company to company, there are a number of themes that explain most of the pressures to outsource. First, CEO concerns about cost and quality drive outsourcing. The same problems, how to obtain existing services at a reduced price with acceptable quality standards, have emerged repeatedly. Second, failure to meet service standards may force management to find other ways to achieve reliability. It is not atypical to find a company where cumulative IT management neglect ultimately culminated in an out-of-control situation from which the current IT department failed to recover. Management may see outsourcing as a way to fix a broken department. Third, a company under severe cost or competitive pressure, which does not see IT as its core competency, may find outsourcing a way to delegate messy and time-consuming problems so it can focus time and little management energy on other differentiators. Next, several financial issues can make outsourcing attractive. One is the opportunity to liquidate the company's intangible IT assets, thereby strengthening the balance sheet and avoiding a flood of sporadic capital investments in the future. Additionally, outsourcing can transform a predominantly fixed-cost business into a variable-cost business. This is especially important for companies whose businesses vary widely in volume from year to year or who face significant downsizing. THE BENEFITS OF OUTSOURCINGOutsourcing has identified numerous potential benefits. The financial benefits of outsourcing included rapid funding of new system development and economies of scale and scope. . By consolidating infrastructure through IT outsourcing, a company can experience cost reductions in hardware and software licenses, facilities and support staff. Outsourcing also can benefit from an external vehicle...... middle of paper...... If you have no previous experience in partnership activities, the relationship can develop deep tensions. The evolution of technologies often changes the strategic relevance of the IT service for a company. From the customer's point of view, assigning a goods service to a stranger is very attractive if the price is right. Delegating a company's service differentiator is another matter. The client who made the initial efficiency decision will judge it differently if he later uses effectiveness criteria. CONCLUSION Outsourcing has many positive effects for a company even if it still contains various problems to solve. In the Internet age, any company may want to focus its internal staff on moving into the environment that will support them tomorrow, and outsourcing may be one of the best solutions. Furthermore, outsourcing is actually more of an integration of two separate businesses to be successful. Both want to take the best parts of each culture and put them together. Furthermore, critical factors should be considered in outsourcing..