IT outsourcing is the use of external service providers to deliver IT-enabled business processes, application services and infrastructure solutions for business outcomes. This may include software development, utility services, software-as-a-service, cloud-enabled outsourcing, data processing, client support services and many other IT services.

Multiple barriers face IT contracts compared to traditional ones. Hence IT outsourcing contracts bear significant risk and are more likely to face problems than traditional IT contracts. Professional understanding and management of outsourcing contracts can help reduce these risks and problems and contribute to the success of the contract.

Examine at least one aspect of the IT business of your organisation (or an organisation that you are familiar with) and identify factors which might encourage the organisation to outsource this part of the business and what benefits and risks might come with outsourcing.

Points to help

- Examine at least one aspect of the IT business of your organisation (or an organisation that you are familiar with).

- Discuss at least two factors that might encourage you to outsource this part of the business. Clearly explain the benefits of outsourcing them.

- Analyse at least two possible risks associated with outsourcing this part of the business and the possible actions that you can take to mitigate them.