AmCham Macedonia Fall 2015 (Issue 47) | Page 14

ANALYSIS Why IT outsourcing? Author: Infinite Solutions The trend of cost cutting encourages big and small companies to outsource as much as possible and focus on their core business. Recent studies1 have revealed that a majority of senior managers viewed their IT departments as cost centers rather than strategic resources. They also perceived their internal IT as being outdated, inflexible, expensive, unmanageable and lacking in customer orientation. As IT becomes an increasingly crucial part of every business, more and more companies consider transferring their IT assets, leases and staff to third parties that promise savings and to keep up-todate with IT. Outsourcing skeptics should consider the following facts: • Outsourcing often results in rationalizations or transfer of staff to the outsourcing company, this can lead to bad company morale; • Outsourced engagements are restricted by contracts which discourage “scope creep”, making them less flexible than in-house team