Summary:In this project, we will talk about outsourcing, but in the area of information technology (IT), we will cover some of the important points of outsourcing in IT department.Outsourcing is important but we need to know first what is outsourcing in general and what is the professional name for the outsourcing in IT departments plus the types of outsourcing and why the organizations use them, also some of the outsourcing examples in IT departments, on the other hand, are there any risks using outsourcing?. Those are some of the points that we will cover in this project so, let’s guide you deeper in IT outsourcing.Introduction:Most of the organizations use outsourcing, it becomes an important technique to help the organizations to keep growing bigger and more professional in the domain of their work. There are many types of outsourcing not only IT outsourcing, those types can be used in different organizations as the specialty they do most.The concept of “outsourcing” came from “outside resourcing”, we mean by outsourcing in general, is the practice of the business to shifting or assigning task, functions, processes or producing to an external company for an amount of time that has been written in the contract.The professional name of outsourcing in IT department is Information Technology Outsourcing (ITO), it has many examples that all can be used as outsourcing:Software development.Hosting.Application support.Technical support.Database development & management.Telecommunications.Infrastructure.Those are some of the examples that ITO used to improve their performance instead of applying it by themselves which will cost them more.IT Outsourcing Types:Outsourcing has some types that can be used in IT departments, defined by where do the organization used them, it depends on the organization needs and those types as it is followed:Moving services overseas:The organization moves some of the services to another region to take advantage of lower cost or it may be a better environment for the product/service.Nearshoring:Moving a business or a service to another country close by that may share the border of your own country.Homeshoring:It let some of organization staff work from home instead of the physical workplace.The Need for IT Outsourcing:With each year the business knowledge become larger, many techniques have been invented and some are will be, one of the helping and important technique for the organizations is outsourcing, here we will list and discuss some of the main important need for the ITO in organizations.Lower cost:It is the main reason for applying outsourcing, the lower cost the more benefit for the organization.Focusing on the business process:It is an advantage of being focused on the main process for the organization and keep the complex task for another company, it helps in producing more.Accessing to global knowledge:Outsourcing makes the companies have knowledge in global/international capabilities and dealing with them so they have more experience.Putting resources in effective place:That helps in making the resources safe and use them for important purposes.Help to reduce risks:With making the more complex and hard task on another experienced company to avoid failure.Increase efficiency:By assigning the tasks to companies that can do them perfectly.IT Outsourcing Risks:Anything thing in business or IT has some risks, and the companies try to understand the situation so they don’t fall in a problem which it may lead to a failure, here we will list some of the outsourcing risks:Losing control:It is one of the main risks that a company does not wish to happen, the organization may lose control of some of their quality, privacy, or maybe their own technology over vendors.Contradiction:Outsourcing may cause some contradiction in some countries because the number of unemployment manufacturing labor will increase.Delayed deliverable:The delay may happen if the vendor did not take the correct requirement and the exact time to be received.IT Outsourcing real-life examples:Alibaba.com:Alibaba is a very popular Chinese shopping website. in the early days of Alibaba creation, the founder outsourced the development part to an American vendor. Now Alibaba is depending on some other Chinese production companies.Skype:Skype is the most popular voice, video calling application in the early years of 2000. the founders of Skype had to rely on developers from Estonia to develop the platform.JPay.inc:JPay is an American firm. it’s providing technologies in the prisons and jails for prisoners like money transfer, video calls and sending emails. This company is outsourcing its quality assurance, software, and hardware.General Electric:General Electric is one of the biggest companies in the world. It has many projects to work on like Electricity, healthcare, pharmaceutical, digital, oil, and other subjects. It outsourced its department of operations, department of data maintaining and separating of the call center to an Indian company.Outsourcing In Middle East:Egypt is one of the top vendors in the middle east and the worlds in general.here is an article posted in an Egyptian newspaper called “the portal”:” Report says Egypt among top 8 vendors of IT services on: September 15, 2017Cairo – Egypt is ranked among the top eight vendors of IT services and products in the Middle East, Europe, and Africa. A recent report by Gartner said Egypt, Russia Alba, Bulgaria, the Czech Republic, Poland, Romania, Russia and South Africa are the best venues that offer outsourcing services. The report touched upon advantages of Egypt in providing cross-border services, given its high-skilled workers and competitive prices, not to mention its strategic geographical location. Egypt has a strong communications infrastructure, the report said, adding that it has 17 maritime cables connecting it with the rest of the world. The report also said that 4G services started in the Arab country as of 2016.”Conclusion:So now we know the components of the IT outsourcing and why we use them, on the other hand, outsourcing may be a huge defiance in cost management or the scalability of the organization, it helps also on making the work more efficient and increasing the experience globally, also the economy becomes larger in different places, that’s the main goal of the outsourcing.At the end, the outsourcing is a very important business technique for any organization that plans to make their work more efficient and smooth, of course, there will be some consequences but that the business environment, always there will be risk and challenges.