Outsourcing Information Technology Department Term Paper

Outsourcing Information Technology Department - Term Paper Example One concern that companies face today when deciding to outsource their entire IT departments is the amount of security needed to protect their product, their financial records, and their customers. Ken Wheatley, vice president of corporate security, Sony Electronics states, â€Å"People are so focused on saving money and shifting operations that they don't think about the safeguards that need to be put in place† (May 2005). Not all companies’ need the same type of security levels, which is a decision made based on the nature of the business. Wheatley also goes on to say, â€Å"U.S. based companies routinely underestimate the extra elements of risk introduced into the offshoring equation by issues such as poor infrastructure, political instability and legal systems that don't line up with Western practices.† Wheatley continues to say that American companies are so set on saving money that they do not realize other countries do not have the same mindset and safegua rds as we do†. While reviewing the aspects of outsourcing portions of the information technology (IT) department, task force managers measured the cost risk benefits of keeping its better run IT operations in-house. The IT department was divided into five sections, application development and maintenance, operations, database and systems administration, voice and data networking infrastructure, and technical training. A study was performed against each of these organizations regarding how they measured against industry leading outsource consulting companies. A baseline of criteria was established for measurement purposes that included the number of full-time salaried employees and annual salaries, number of years experience, employee educational achievements and certifications, and efficiency of the departmental workflow process. In addition, the business management teams consulted with several IT consulting companies to gather as much information as possible for the considere d outsource IT organizations.