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4Feb/100

Computer Science: Study Notes [Outsourcing] – yr 12

Advantages
Give business freedom to focus on core compentencies Cost an efficiency savings
Access to cheaper labour Allows the company to focus on core operations'
Access world class help desk support The company doesn't have space to accomidate a new employee and building onto an existing building is costly or cannot be done because of lack of space.
Access state of the art technology Staff flexibility, allows the company to access additional resources
Disadvantages
Wages of Australian workers may be pushed down. Loss of control over the outsourced task
Quality of services recieved from outside sources may not be of the same standard Hidden cost  - one may sign a contract that contains hidden costs
Local workers have to compete on the global market Threat to security and confidentiality - outsourcing propietry or knowledge, drawings, formulas. - may be at risk as these would have to be sent to the outsoucing company
Security issues in relation to sensitive data
language and cultural barriers
Alternatives to outsourcing
Provide pathways for students to develop in these ICT areas
Provide incentives to business to take on trainees
Provice accredited training organisations to deliver ICT cources to a set standard
Scholarships
Tax benefits to Australian businesses to emply australian ICT workers over outsourced workers
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