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  • Essay / Computer outage caused by an inexperienced operator in...

    IntroductionThis is a Royal Bank of Scotland (RBS) computer outage occurring in India. This is said to happen because an “inexperienced operator” of Indian staff accidentally erased information while upgrading the software. It is also a criticism that the problem is due to outsourcing. But Stephen Hester, chief executive of RBS, objected because there was no evidence that outsourcing was causing the problem. However, this has already happened and the company must be responsible for what happened. Even though the problem was resolved within three days, the company had to bear the losses of 17 million customers and created a backlog of over 100 million transactions and all losses cost between £50 million and £100 million . large companies resort to outsourcing through the IS/IT sector, it is because the company was not also in the IT/IS field in order to gain benefits for their business including by reducing expenses. This is also to ensure that the company can focus on its core business and outsource other operations to an outsourcing company with expertise in the field. Question 1: Critically evaluate the competitive advantage businesses can achieve through IS/IT outsourcing. Provide a suitable example to support your answer. Competitive advantage occurs when a company or country can produce a product or services at the lowest opportunity cost compared to its competitor. Meanwhile, outsourcing occurs when a company has subcontracted its part of its work or work to another company that is more expert and experienced to handle the task. Additionally, almost all large companies outsource their part of their work or labor in order to gain a competitive advantage. competitive ...... middle of paper ...... software that helps plan automatic maintenance, troubleshoot problems, and provide information about computer systems. By performing disk maintenance, it helps computer systems maintain optimal performance. At the same time, it can reduce the likelihood of IT systems breaking down. Finally, implementing security features on computer systems also helps computer systems avoid failures. This can be done using a password or by controlling network access. With this, an authorized user cannot easily access the network or computer systems. This helps prevent theft of data and information contained in computer systems. It is also true that there are many ways that computer systems can fail, although many ways have been implemented to prevent it. But the above methods are some of the best methods that can be applied as a precautionary alert to prevent this from happening..