• Quantifiable: There is a way to measure the size or magnitude of the benefit, but financial benefits are not directly determinable. For example, a firm might expect a 20% increase in customer retention, but to determine the financial benefit of resulting increased sales, it would require an analysis of what items they would buy. Most business cases revolve around quantifiable benefits, so it is important to ensure
the collection of a comprehensive list of quantifiable benefits and any associated costs.
• Measurable: There is a way to measure the benefit, but it is not necessarily connectable to any organizational outcome. Management must ensure alignment with the business strategy. For example, many organizations collect satisfaction or web engagement data and are able to detect improvements.
• Observable: They can be detected only by opinion or judgment. These are the subjective, intangible, soft,
or qualitative benefits. Things seem better but no measures are available. For example, customers might be expected to be happier or less argumentative.
Economies of scale: "Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable."
Benefits of outsourcing:
Sell equipment, buildings (large cash inflow)
Downsized payroll - outsourcer hires employees
Offer cost savings
Offer service quality
Ease transition to new technologies
Offer better strategic focus
Provide better mgmt of IS staff
Handle peaks
Consolidate data centers
Infusion of cash
Many outsourcing clients are increasing their corporate social responsibility (CSR) expectations for themselves and for their global IS outsourcing
providers. Pessimists of global IS outsourcing are concerned that it maximizes profit for the rich but offers little or no benefits for other groups, especially the poor in developing countries. The pessimists are concerned that global IS outsourcing will deepen income inequalities and have disruptive effects on society around the globe. Optimists of global IS outsourcing see it as a way of sharing wealth on a global basis. It is ethically justified because it can improve efficiency, help
developing countries where unemployment is very high by providing jobs, lead to transfers of knowledge and information technology, and encourage better educational systems in less developed countries so that people can do the outsourcing work. Ironically, global IS outsourcing may benefit both the more developed origin country (frequently the United States, Western Europe, and Australia) as well as the destination country through free trade and reduced prices for computers and communications
equipment. It also may fuel the creation of high‐level jobs for workers in more developed countries. To promote corporate social responsibility, both clients and outsourcing providers should implement the following guidelines: understand relevant CSR regulatory requirements to ensure compliance, establish measures and report CSR performance and compliance to stakeholders, respond to inquiries about CSR compliance, embed CSR in ongoing operations, and develop a CSR culture through hiring and
education.
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