Essay on Information Systems Management

Critical ReflectionsThe issue of outsourcing ICT management can be examined in the context of enterprise resource planning and knowledge management. The former stands for a system designed to organize, standardize and coordinate data exchange across the entire organization to facilitate the managerial planning and control of business processes. The systems are designed to model the activities of the organization in a flow of standardized data to enable a smooth and integrated view of the organization’s activities. This will give managers easy access to all the relevant data about organizational processes. The goal is to build a common data architecture that yields comparable data across different divisions of the organization, and to reduce the complexity of the management of the organization’s overall activities.An enterprise resource planning (ERP) system is considered relevant to outsourcing of ICT management in several respects. First, an ERP system provides insights into how available resources can be allocated to achieve outsourcing goals, while not compromising cooperation with a vendor or an end-product quality. Second, the ERP system sheds light on and support effective cooperation between the parties to ensure a business can get the most of the opportunities provided by outsourcing. Therefore, it is possible to assert that the ERP system management helps to avoid or alleviate the limitations associated with outsourcing ICT management.In addition to the ERP system, outsourcing of ICT management is associated with knowledge management (KM). The latter refers to the process designed to organize, standardize and coordinate data exchange across the entire organization to facilitate the managerial planning and control of business processes. The systems are designed to model the activities of the organization in a flow of standardized data to enable a smooth and integrated view of the organization’s activities. This will give managers easy access to all the relevant data about organizational processes. The goal is to build a common data architecture that yields comparable data across different divisions of the organization, and to reduce the complexity of the management of the organization’s overall activities.It is essential to examine outsourcing of ICT management through the prism of KM that performs a repertoire of functions. First, KM effectively captures knowledge that might be critical for effective decision-making; for example, a business relies KM practices to study and compare third parties and choose the vendor that best fits with organizational strategic vision. Second, KM helps to organize and share knowledge to create an effective network of a business and its vendors. Free flow of expertise and information helps a company to control its performance even if it decides to outsource some of its operations. Finally, KM supports effective decision-making that is necessary to improve customer satisfaction and enhance overall performance productivity. While relying on KM practices, a company makes sure that reduced production costs do not come at the expense of declining quality or growing customer turnover rates. Therefore, outsourcing of ICT management can help a company succeed only if it is examined through the lens of other effective practices, scuh as an ERP system or KM.ConclusionIn summary, outsourcing involves appointing another firm or company for a specific task. Outsourcing ICT management has become a common practice that helps to access a wider talent pool, improve performance, and cut costs. Many big companies, including WhatsApp, outsource their ICT functions to enhance performance, boost innovation, and maintain competitiveness in a turbulent business environment. Although outsourcing involves multiple benefits, it is necessary to stay aware of potential limitations. The latter include, but are not limited to, lack of communication, delayed projects, loss of control over third parties’ performance, and language and time-zone barriers. Importantly, most of these hindrances can be effectively overcome so a business can make the most of outsourcing opportunities. A range of strategies were suggested to make outsourcing of ICT functions an effective options capable of yielding multiple benefits. An important suggestion is to examine outsourcing in terms of other practices, such as enterprise resource planning and knowledge management.Reference ListBahli B., Rivard S., 2003.‘The information technology outsourcing risk: a transaction cost and agency theory-based perspective’, Journal of Information Technology, vol. 18, no 3, pp.211–21.Burenko S., 2023, 6 IT outsourcing case studies every startup can learn from. [online] Available at: https://www.uptech.team/blog/outsourcing-case-study [Accessed: 22 January 2024]Kvartalnyi N., 2021, Complete comparison of software development hourly rate: USA vs. Europe [online] Available at: https://inoxoft.com/blog/complete-comparison-of-software-development-hourly-rate-usa-vs-europe/ [Accessed: 22 January 2024]The Economic Times, 2023, What is ‘outsourcing’? [online] Available at: https://economictimes.indiatimes.com/definition/Outsourcing [Accessed: 22 January 2024]