ECONOMIC DEVELOPMENT OF IT OUTSOURCING MARKET IN BUSINESS INSTITUTIONS/ ORGANIZATIONS OF SMATSKHE-JAVAKHETI REGION OF GEORGIA

Abstract

The use of IT outsourcing in business  organizations of Samtskhe-Javakheti Municipality started with the support of IT infrastructure and then spread to its tasks and business processes. Today, IT outsourcing is an established type of customer service that is evolving alongside the information and communication technology market.

With the shift to the information economy, the spread of IT outsourcing, which includes the introduction of information processing systems, information technology and enterprise management, has become explosive. The use of innovative information technologies in the modern market environment allows enterprises to obtain material benefits and increase their competitiveness.

At the same time, their use leads to an increase in the complexity and scale of IT projects, changes in the IT infrastructure of enterprises, increased saturation of the enterprise with information and communication technology equipment and software, an increase in the share of IT costs in the total costs of the enterprise.

In the region, the main groups of IT outsourcing services are:

• Technical support and management of IT - infrastructure: support for computer equipment, basic corporate services, communications systems, information and technical security systems, business applications.
• Creation and development of information systems: development of applications and their integration with other systems, development of existing information systems.
• Training and development of staff in the organization - client in the field of IT: creation and implementation of training programs, evaluation of the effectiveness of training.
• Provision of IT personnel of various skill levels to perform assigned tasks: developers, programmers, system administrators, database administrators, project managers, analysts, etc.

Constant changes in business and the complexity of IT infrastructure make it difficult for many companies to control and maintain growing IT systems.

A company specializing in IT outsourcing services can ensure the high reliability and efficiency of systems operation due to high technology resources, experience and production scale of its organization. Detailed control over your own IT systems and what the outsourcer does is achieved through clear regulation of interactions.

Through IT outsourcing the company can:

Quickly establish the proper functioning of IT systems

Achieving the required quality of service

Involve highly qualified specialists in problem solving immediately

Significantly reduce the risk of losing critical data

Optimize and predict costs;

Concentrate company resources on core business

Among the goals of IT outsourcing are the following:

Reduced total cost of ownership (TCO) and “hidden costs” are associated with standardization, larger scale and better management. Among other things, capital is freed up for reinvestment in the main business;

Standardized infrastructure and increased transparency of fixed assets combined with effective budget management. service-level agreement (SLA) transparency is enhanced and combined with effective workload management;

A decrease in the number of service providers entails a decrease in the complexity of the infrastructure, which leads to a simplification of the support process and to a decrease in operational risks;

Increasing quality: integrated solutions reduce the number of uncoordinated suppliers, increasing the quality of services provided and the level of user satisfaction;

Increased scalability: Providing flexibility and scalability requires an increased level of support for the core business.

Outsourcing the solution of IT tasks relieves the company from the need to calculate the costs of developing and implementing software solutions and maintaining a rather complicated accounting of intangible assets. Today, many experts admit that accounting for software purchased by a company, calculating the corresponding tax amounts, depreciation deductions, etc. is a non-trivial task, since modern legislation does not sufficiently cover intellectual property objects, and there is no methodology for accounting for such complex objects as, for example, an Internet portal.( Ilyin V.V. 2006).

By outsourcing software development and personalization and supporting Internet portals, companies are simultaneously avoiding the hassle of accounting in this area. As a result, only the amount corresponding to the payment for the services of the outsourced partner will appear in the company documents. All software and tax accounting issues are handled independently by the partner.

The transfer of the information system as a whole to an external company allows the company to get rid of the costs of software and hardware, for appropriate updates, repairs and maintenance. Recently, we are beginning to talk not only about outsourcing work on setting up and configuring, maintaining and maintaining information infrastructure, but also about transferring to third parties the entire range of measures to create and support a corporate information system.

In the latter case, companies do not even try to acquire hardware in their ownership, as everything will be submitted / subject to a partner outsourcer. Such complex outsourcing shifts the care of the partner to the maintenance of the infrastructure. Also, periodically update hardware and software, organizational equipment and household consumables.

Employees of an outsourcing partner who work in a company in accordance with a contract report to their immediate superiors, and not to the management of the company that ordered the outsourcing services. This can create difficulties when it is necessary to carry out any operational actions, for example, to restore the operation of the information system after a failure.

In this case, the customer company has information about the optimal sequence for restoring the functions of the information system, and employees of the outsourcing company act only on the instructions of their own management.

The admission of third parties to the company's business processes creates significant information security risks. These risks are associated with both the possibility of loss of information and the possibility of its disclosure through the fault of the outsourcing service provider's employees. This is a very important factor, since even the signing of a special agreement on the liability of an outsourcing partner for violation of the integrity or confidentiality of company information is not a guarantee that this will not happen.

As a rule, subsequent legal proceedings, and even their successful completion, cannot compensate for the company's losses. Therefore, today domestic firms are extremely wary of the possibility of processing their internal information by third parties.

If we summarize the effectiveness of IT outsourcing, we can highlight both the Positive and Negative of IT support both independently and through IT support outsourcing.