Lancero, Rustom M.

BSIT 412

05 Seatwork _ITSM

1. For every country, IT Outsourcing is the leading market in terms of project revenue. Why is the
need for external contracting for IT services universal?

- IT Outsourcing is a cost-effective solution where companies choose to hire external

contractors rather than hiring and maintaining a full time IT that is dedicated only to their
company. Also, external contractors usually have the specific skills required by the company
for project development, allowing the company to avoid the overhead expenses associated
with keeping a permanent employee. External IT service providers continuously stay up to
date on the latest technologies and trends, so that organizations may benefit from modern
solutions without the need for big investments in regular education for an internal team.
External contractors are more responsive in general and can be hired rapidly to handle
particular demands. In the fast-paced IT sector, where delays can result in missed
opportunities or increased security threats, deployment speed is critical.

2. Meanwhile, for every country, IT Consultation & Implementation is the least market in terms of
projected revenue. Why is consulting for IT strategies not prioritized?
- Based on what IT consultation & implementation do, it is not a waste to invest in, but some
companies may not be fully aware of the value of IT strategy consulting and implementation
is important for improving business strategies and if leaders don’t understand it’s
importance, it may not be given priority. Due to the ongoing pace of technological advances,
the allocation of resources for investing in IT strategy consultancy is not always prioritized.
Because of the necessity for frequent adjustments to adapt to the rapidly evolving IT
landscape, firms may be hesitant to make large investments in long-term plans due to the
quick speed of change.

3. Given the strong presence of the BPO industry in the Philippines, rationalize what the Philippines
can do to revitalize its other IT Service markets to compete with global key players.
- First, Philippines government must support the implementation of improving IT service
markets, the government must encourage the research and development of this type of
market, they can do that by reducing tax, put more rewards and beneficial legislation to the
IT Firms in the Philippines. Given the fact that BPO industry has a strong presence in the
Philippines, they can invest in education and skills development, by investing in education
and training programs and eventually producing a skilled IT employee, equipped with the
latest technological knowledge. Philippines can also improve its own IT community, by
establishing relationships with international companies and taking part in international
technology.