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External Resources

 

Buisnesses make use of external resources to help support thier business:

  • Outsourcing

    • This is when parts of a business (ICT related) is done by an external source. For example payroll in a company might be outsourced to a different company. This is done so that the staff can concentrate and focus on what they are good at, to aid the business side of the organisation

Advantages

  • This might be done because it is cheaper than in-house and it may improve company performance

  • This is also done because the company would not have to worry about hiring qualififed staff for the jobs or need to worry about complying to ICT legislations

Disadvantages

  • ICT people would lose their jobs if the company decided to outsource

  • The company has no say in who the outsourcers hire

  • It may cause a security risk

 

  • Offshoring

    • This is when a company uses services that are in another country. For example call centers in India. Offshoring could be done in two ways: were the staff are still employees of the company or were an outsourcing company is used.

Advantages

  • This is cheaper

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Disadvantages

  • Problems with language and understanding the offshore staff who may have a different first language​​

  • Ethical Issues concerning the use of low paid workers

 

  • Bulk Printing

    • Companies carryout a service to bulk print things like bills and payroll. It is not very common but you should remember it. 

    • The companies that provide the service usually have high-speed, high-quality printers

 

Ways of obtaining ICT services from suppliers

  • Contracting 

    • ​Contracting simply put is the purchasing of equipment and services with a contract

  • Leasing

    • This is basically renting. Instead of spending alot of money at the start of your company you could just lease it (borrow) and reduce the cost because you never own it you are just renting it.

    • Advantages

      • It is helpful because it is cheaper in the short term 

      • It is easy to lease

      • It makes budgetting easier

    • Disadvantages

      • It is disadvantageous because you pay a lot over a epriod of time making it more expensive over time and you never own the equipment

 

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