Critique the below:

Outsourcing Project Management Services:

Making It Work for IT or Digitally Outsourced Projects

The purpose of this study is to understand the motives behind outsourcing as it is becoming inevitable for

reasons like cost reduction, operational efficiencies, etc. Further, the study investigates the pitfalls of

outsourcing as well. The information for this investigation includes a few specific cases of various companies

that are outsourcing their project management services. The information is collected from various papers,

annual reports and relevant journals. The reasons motivating organizations to outsource are also changing

permanently, with companies increasingly outsourcing to achieve customer$-$centricity and unlock new

technological capabilities, rather than simply to cut costs. This study analyzes factors that are expected to

make outsourcing market more competitive and collaborative as both buyers and service providers are heavily

in favor of basing contracts on outcomes rather than outputs, choosing to share risk to reap greater rewards.

Introduction

Outsourcing has become a straightforward and price$-$effective technique that is employed

widely in today$$s digitization world. The developed countries always prefer outsourcing their

business processes to developing countries like India, China, etc.

Outsourcing is a method in which firms and organizations give work to the outside vendor.

Any work process which can be handled from the outside location of the organization is

outsourced. This method is also known as offshore outsourcing. Offshore outsourcing permits

the organization to get top quality services at cheap operational cost.

There are three broad classes of offshore outsourcing:

$1.$ Business Process Outsourcing $($BPO$)$: It deals with the back workplace and front

workplace outsourcing.

$2.$ Infrastructure and Technology Outsourcing: It deals with networking and

technology services.

$3.$ Software Outsourcing: It deals with the phenomenon of software services.

Outsourcing can be done for processes like customer care support, surveillance and

security management, inventory management, payroll and so on$.$ A lot of call centers also

outsource their work. Content writing, data entry, editing services, typing work, image

manipulation services, transcription, and data conversion services are some popular services

for outsourcing.

$24$ The IUP Journal of Business Strategy, Vol. XVI, No$.4,2019$

India provides efficient offshore outsourcing services to its clients; it provides outsourcing

services in almost all the areas of outsourcing. Apart from India, other countries that are

efficiently working in the field of offshore outsourcing services are China, Russia, Egypt and

others.

IT Services Outsourcing

Digital outsourcing or Information Technology Outsourcing $($ITO$)$ is an undeniably across

the board practice among organizations. Given that the degree and multifaceted nature of

Information Technology $($IT$)$ is always expanding, a few organizations are less inclined to

worry about the concern of Information Systems $($IS$)$ internal development, and are

considering outsourcing to make a more effective use of resources and expand IT value.

Hence, the significance of knowing which aspects may impact successful relations between

the client entity and the digital or ITO service provider. IT outsourcing is all about hiring a

third party to handle an entity$$s IT activities as per the terms and conditions fixed between

the parties. Many entities have been worried with regard to the complexities of executing

and implementing contracts $($Quinn and Hilmer, $1994).$

Outsourcing is developing, advancing and maturing to deliver worth well beyond cost

savings. Some of the present trends: the expansion of multi$-$sourcing, the emergence of new

stakeholders, changes in customer$-$supplier relationships and new governance models are gaining

trend. It is the standard path of a maturing business strategy and a manifestation of an increasingly

global atmosphere that leaders are concerned about. Company$$s top management believes that

innovative partnering leads to growth and performance does not deter them from opting for

outsourcing.

As the examples of Apple and Airtel illustrate, the complexities of innovative partnering

yield the advantages of growth and performance. Outsourcing is now as mixed as the business

itself, differing by country, sector, and company strategy. It is characterized by smarter

suppliers, improved automation and better$-$informed buyers driving toward long$-$term,

sustainable outsourcing arrangements. Firms that effectively master the new complexities

of outsourcing$$and also the diverse business model innovations they create$$stand to

reap the advantages and lead the way to the rise of collaborative partnering.

$1.$ Apple designs the iPod in its Cupertino, California offices, but it outsources the

manufacturing to select Chinese firms$$not just because they can build it cheaply

but al