Outsourcing of IT: Reason, Benefit and Potential risks for USA Companies

Outsourcing is a set of motivations for perceived benefits with potential risks. This paper investigates the main motivations for outsourcing IT services, emphasizing the advantages that are thought to be present, the risks that are associated, and the technical aspects. By analyzing current industrial practices, we identified some key drivers for outsourcing, such as cost savings, focus on goals, access to global talent, improved service quality, and most notably, time zone advantages. The effective application of specified motives tends to cost and speed to spread on the market with flexibility. On the other side of the coin, it comes with certain potential risks, like loss of control, quality issues, hidden costs, and security risks. The study highlights the purpose, benefits, and potential concerns. By providing a comprehensive overview of the drive for outsourcing, the benefits, technical considerations, and potential pitfalls of IT outsourcing. This paper aims to guide US companies in making informed outsourcing decisions that align with their long-term strategic objectives.