Definition / Scope
Information technology (IT) outsourcing refers to the sub-contracting of certain functions or to seek resources outside an organization for all or part of an IT function that does not require much of technical skills. Short-term assistance or cheaper rates on simple task are the major reasons why companies outsource work. Outsourcing enables staffing flexibility for an organization and allows them to bring in additional resources when required and release them when they are done, thus fulfilling the cyclic or seasonal demand.
The IT outsourcing market is classified under 2 large service groups, segmented by service lines as described below
Renewable Services: These are usually long-term contracts, ranging 3 to 5 years on average, focusing on management activities and infrastructure support.
- Application Management: Includes management of application to guarantee availability, but excludes application customization services.
- Infrastructure Management: Management and monitoring infrastructure environments. Included within this services modality are on-premises hosting, network management, and server management.
- Desktop Support: Support on end-user activities across devices, owned or not, such as desktops, notebooks, smartphones, tablets, and printers; also includes local applications support and installation.
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