SWOT analysis for outsourcing a business function, in this case - Essay

SWOT analysis for outsourcing a business function, in this case - inventory management to cloud computing - Essay Example Secondly, lack of knowledge of any particular company would lead to an inefficient service being provided by companies such as Cloud Computing at the expense of the time and resources of its client. The inventory function is one function that is central to any organization’s entire business, hence it should be kept in-house rather than out-sourcing it to companies like Cloud computing because it might further increase the chances of fraud and theft. The opportunities and risks that may arise would be: Opportunities: Specialist vendors would really manage the inventory management system more efficiently if they get good knowledge of the company’s activities, culture, environment, etc. Time would be saved Cyber embassies, if created, would really help in obtaining data from far away locations. Data could be retrieved quickly if the region of operation of the company is same where the cloud computing office exists. Focus of the business would divert towards the improvement of the business rather than focusing on the inventory management system Risks/Threats: The inventory management function might not be easily understood by Cloud Computing Having older and newer licenses would both have their respective complications. Data could not be easily accessible in any other regions e.g. a company operating in the EU would not be able to store its data with a U.S vendor.