Outsourcing IT needs in the corporate world has become extremely popular because it is cost-efficient and it gives IT resources to companies that may not otherwise be able to afford them. Another positive side effect of IT outsourcing is that it has brought many technology jobs back to the United States.

As convenient and patriotic as IT outsourcing has become, it also have several limitations that have caused many companies to re-think the idea of funding their own internal IT group. It is important for a company to be completely familiar with these limitations before developing any kind of company policy in regards to IT.

The Customer Could Outgrow The Outsource Company

When an IT outsourcing company first takes on a new client, the relationship is beneficial to both sides. But things can start to get inconvenient for the client when the client's business starts to outgrow the capabilities of the IT outsource group.

An IT outsourcing company can become entrenched in the daily routine of its clients, which is great at first. But when the IT company can no longer keep pace with the growth of its clients, then the clients are stuck trying to find a new solution and keep track of its own IT assets at the same time.

The IT Outsourcing Company Lacks The Necessary Technical Expertise

IT outsourcing clients like to believe that their support company knows everything there is to know about computers and the Internet. But every IT support company has its areas of expertise and they have the technical areas where they are not quite as strong. If the client starts to experience needs from the areas where the IT outsourcing company is not so strong, then that can become a significant business issue.

This problem can be amplified if the client is a small business experiencing growth. An IT outsourcing company is not as likely to bring on new personnel for a smaller client, which leaves the client without a solution.

The Client Losses A Measure Of Control Over Its Data

No matter how large or successful an IT outsourcing company may be, there will always be the limitation of client security and the protection of critical customer data. All it takes is one rogue employee of the IT outsourcing company to compromise all of the client's critical data.

Some IT outsourcing companies have safeguards put in place to try and prevent client data compromise, but those safeguards are limited by how much access the IT company has to the client network. In most cases, that access has to be comprehensive for the IT outsourcing company to be able to do its job.

Outsourcing IT responsibilities can take a lot of stress off of a client and allow that client to operate his business by focusing on his core competencies. But there are limitations to IT outsourcing that could make it necessary for a client to do his own IT support and pay the extra costs.

I remember the day like it was yesterday. Pac Man had finally arrived on the Atari 2600.  It was a clear and sunny day, but it was slightly brisk. My dad drove us down to the video store about three miles from our Michigan house. If I remember correctly, the price for the game was $24.99.  It was quite expensive for the day, probably equaling a $70 game in today’s market, but it was mine. There *was* no question about it. If you purchase a game, it’s your game… right?

You couldn’t be more wrong.  With all the licensing agreements in games today, you only purchase the right to play it. You don’t actually “own” the game. 

Today, game designers want total control over the money that comes in for a game. They add in clauses that keep the game from being resold, rented, borrowed, copied, etc. All of the content in the game, including the items you find that are specifically for you, are owned by the software developer. Why, you ask, do they do this? It’s all about the money.

This need for greed started years ago, when people started modifying current games on the market. One of the first games like this was Doom. There were so many third part mods made, but because of licensing agreement, none of these versions were available for resale. The end user, or you, had to purchase Doom before they could even install the mod.  None of these “modders” were allowed to make any money off their creation.

HP is taking legal action against Oracle for allegedly breaching its 2010 partnership agreement of porting HP’s core software products with the latest versions of Itanium. In March, Oracle announced it would not be developing any new versions for products designed for the Itanium processor. Itanium has the ability to power the so-called Business Critical Systems hardware for extremely demanding enterprise applications. However, Oracle said the chip line is about to die.

The companies’ lawyer met in the Santa Clara County Superior Court with Judge James Kleinberg presiding to discuss their side of the event. Others in the courtroom included Ann Livermore, HP board member and former enterprise business chief, and Oracle’s co-President Safra Catz. Catz and Livermore were the two key negotiators for the agreement. Livermore was to testify later in the day. Kleinberg is set to rule if the companies had a legally binding contract.

Jeff Thomas, HP’s lawyer, focused on the so-called Hurd Agreement wording, where the companies reiterated their partnership after Oracle hired Mark Hurd, former CEO for HP. HP also sued Hurd for breaking the confidentiality agreement.

Thomas and the lead lawyer for Oracle focused on one paragraph of the agreement, which read Oracle would continue to provide its product suite on the HP platform in a way that’s consistent with the existing partnership before Hurd’s hiring.

With the skyrocketing popularity of Android and iOS operating systems, software developers got a whole new arena opened up. Many of the programmers have progressed to concentrate solely onto Mobile Technology Development. This is mainly due to the high demand as well as numerous lucrative ideas left to explore in the Mobile App world.

Exponential growth of smartphone users

As per the survey by eMarketer, the number of smartphone users across the globe crossed 1 billion almost two years ago. The expected number of smartphone users by 2014 end is 1.75 billion.

With smartphones, iPads and Tablets getting more accessible and less expensive day by day, the development potential for mobile apps is truly vast. The under-penetration in emerging markets like India and China in Asia shows that there seems to still a lot of steam left in the mobile app development industry.