Many times, an organization needs a specific skill for a limited period of time. Instead of training an existing employee or hiring someone new, it may make more sense to outsource the job. Outsourcing can be used in many different situations within the information-systems function, such as the design and creation of a new website or the upgrade of an ERP system. Some organizations see outsourcing as a cost-cutting move, contracting out a whole group or department.
New Models of Organizations
The integration of information technology has influenced the structure of organizations. The increased ability to communicate and share information has led to a “flattening” of the organizational structure due to the removal of one or more layers of management.