The dynamics of the business market are critical in shaping and defining the decision-making process of a business enterprise. The success of a company is based on its capacity to identify means and ways of taking advantage of the opportunities coming its way. This paper looks at the dynamics of outsourcing in a company and the advantages and challenges that arise from the practice of outsourcing. Outsourcing can be defined as the process of subcontracting some of the noncore services that a company provides or is involved in.
Subcontracting frees up of time, personnel and facilities that can be utilized by the company in increasing the efficiency and effectiveness of an organization. The need to outsource may arise from the need to increase competence and productivity and gain a competitive advantage at the same time. It may also occur due to the need to cut on costs and mitigate the challenges of high costs of operation. For any given business, the productivity of the workforce forms the basis of success or failure (Jaiswal and Levina 61).
The need for data centers in business enterprises is created by the fact that information has to be backed up, and the operability of the servers has to be maintained. Outsourcing the data was a much-needed strategic move that would allow for real-time changes of models. The data center outsourcing was also essential in allowing for survival of the company in case of disasters and at a lesser cost.
Every decision made by a company is liable for reevaluation in relation to the primary goals. For J-Trading, outsourcing its data centers, and help desk was a necessary move that would lead to increased productivity by the company. There is a need for the company to re-analyze its ties with the various businesses that run its services to ascertain the degree of efficiency that has been achieved since the onset of the outsourcing process (Jaiswal and Levina 69).
Cloud computing involves the leveraging of third party computing capacity over a given network. The aim is to cut the costs and improve agility, but most importantly, it is aimed at utilizing the infrastructure available. Cloud computing is a technology that could greatly improve and enhance the effectiveness of data management and storage of J-Trading (Jaiswal and Levina 70).
Outsourcing is used as a tool for improving the working and efficiency of a company. However, to ensure the effective growth of the company, the company has to pinpoint and highlight the specific areas that need to be outsourced. The cost of operations in a company is inclusive of the salaries that have to be paid to the employees. By outsourcing the help desk and data centers, the company reduces the cost of paying the workers who were attached to the various outsourced departments.
Jaiswal, V., & Levina, N. J-Trading: full circle outsourcing. Journal of Information Technology Teaching Cases, 2(2), (2012). 61-70.