{"id":73854,"date":"2023-01-08T15:11:45","date_gmt":"2023-01-08T13:11:45","guid":{"rendered":"https:\/\/codeacademy.bg\/uncategorized-bg\/it-sobstven-produkt-ili-it-outsource\/"},"modified":"2024-04-09T11:02:20","modified_gmt":"2024-04-09T08:02:20","slug":"it-sobstven-produkt-ili-it-outsource","status":"publish","type":"post","link":"https:\/\/codeacademy.bg\/en\/programirane\/it-sobstven-produkt-ili-it-outsource\/","title":{"rendered":"IT Own Product or IT Outsourcing?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">IT outsourcing started in the 1980s and continues to dominate the industry. However, today we are beginning to see things change as more and more companies want to develop their own products and view IT as a strategic function worthy of internal resources and commitment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The decision whether IT services should be internal with its own product or performed by external providers is crucial and there is no correct answer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For larger IT companies, it often makes sense to develop their own product. For companies with fewer resources, outsourcing appears to be the more suitable option. But what about mid-sized companies? What is the best option for them?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">IT Function in Mid-Sized Companies<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In most mid-sized companies, IT plays an important role. The main IT functions include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Data center operations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Application development<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IT staff support<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">End-user support<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In these companies, data center operations are often seen as a commodity. However, with software as a service (SAAS) and cloud models continuing to dominate, data centers are not as important as they once were. As for user support, automation is quickly replacing human support and changing the way this function is outsourced.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Set of IT Professional Skills<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many companies are starting to view IT as a strategic function. An IT specialist must possess a unique set of skills:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quality assurance, which is crucial for software and system development.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Documentation to mark processes and products for fellow IT professionals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Databases, as they are at the core of most software programs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Networks, as everything is connected, and understanding them is crucial for problem-solving.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">HTML for web coding as a last resort.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Microsoft Office, as it is essential and widely used in the workplace.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Additional skills often desired by IT specialists include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Programming\/application development<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Project management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technical support<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Website development<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business intelligence\/analytics<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Pros and Cons of IT Outsourcing<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that we have looked at IT functions in most organizations and the desired skill set, let&#8217;s dive into some advantages and disadvantages of IT outsourcing:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operational costs: Outsourcing any function in the organization reduces the costs associated with hiring employees to perform that function. The company may have fewer expenses and gain advantages such as group purchases for necessary software through their IT provider.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Freeing up internal resources: If IT is not central to a specific product or service, it may make sense to outsource it to an external provider and free up resources for key internal functions. Then, more resources will remain for other elements directly related to the company&#8217;s products or services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hiring experts: Outsourcing makes sense when the company needs a team of IT experts to handle specific needs. IT outsourcing firms often work hard to hire and retain the best and brightest IT specialists, passing that expertise on to the company looking for external providers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risk reduction: Business management technology can be expensive. IT outsourcing providers work with many clients and are up-to-date with best practices and software, which can reduce risks for the company.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Finding the right vendor: Finding the right IT outsourcing provider is easier said than done. Since IT affects everything in most organizations, a provider that is suitable for all needs and corporate culture must be found.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loss of control: Even when IT is outsourced to external providers, the company cannot (and should never) distance itself from the IT function. It will need an employee who is familiar with IT to supervise the provider and make sure they are doing what they are hired to do.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delay: A good IT provider will have a plan for rapid response in emergency situations. However, the needs of a larger client may take precedence, pushing the &#8220;emergency&#8221; in question to the back burner.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Network familiarity: Internal IT will be better informed about the company&#8217;s network. If outsourcing is used, the external specialist will need time to develop and learn it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security and accountability: Bringing in an external company may make issues around information and security a larger concern. This is potentially a bigger issue with foreign companies where laws regarding privacy and security may differ. It is important to ask many questions about how the vendor will protect sensitive data, including employee and product-related information.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IT outsourcing started in the 1980s and continues to dominate the industry. However, today we are beginning to see things change as more and more companies want to develop their own products and view IT as a strategic function worthy of internal resources and commitment. The decision whether IT services should be internal with its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":73079,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[97],"tags":[108,109,110],"class_list":["post-73854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-programirane","tag-it-en","tag-it-kursove-en","tag-it-obuchenie-en","grve-entry-item","grve-blog-item"],"_links":{"self":[{"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/posts\/73854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/comments?post=73854"}],"version-history":[{"count":1,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/posts\/73854\/revisions"}],"predecessor-version":[{"id":73855,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/posts\/73854\/revisions\/73855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/media\/73079"}],"wp:attachment":[{"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/media?parent=73854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/categories?post=73854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/codeacademy.bg\/en\/wp-json\/wp\/v2\/tags?post=73854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}