Case study 2 Example | Topics and Well Written Essays - 250 words

2 - Case Study Example The vendor will have more expertise since they face issues that are more varied (Desai, 2009). In order to outsource the function, however, XYZ Company needs to identify first the need for outsourcing (McIvor, 2012). The company should do an internal assessment on why they want to outsource and whether it is due to failure of the internal staff. Next, the company should recognize the IT tasks that they should outsource and those that must be retained in-house. The company should seek to outsource services that are already mature and available in the marketplace. Those tasks that should be outsourced should be competitive in the marketplace in order to get the best price (McIvor, 2012). XYZ will contend various costs with when it comes to outsourcing IT functions. The first is the cost of searching for a vendor and contracting (Willcocks et al, 2011). Next, the company will have to deal with the cost of transition, to an IT function vendor, as well as management of the outsourcing effort, which includes monitoring the vendor’s work, bargaining with them, and negotiation of required contract changes. Finally, there are costs with the transition after the company has already outsourced, which may include switching vendors and re-integration of internal IT activities (Willcocks et al,