What conclusion can be drawn from outsourcing the IT function to save expenses?

Outsourcing IT functions can lead to cost reductions for the organization. By transferring responsibilities to a third-party provider, a company can often take advantage of lower labor costs, improved efficiency, and specialized expertise that may not be available in-house. This allows companies to reduce their operational expenses.

Additionally, through outsourcing, organizations can focus on their core competencies while allowing external specialists to manage IT operations, potentially leading to more effective resource allocation and financial savings. This strategic decision does not necessarily imply that the IT department was ineffective or that outsourcing is the best solution across all departments; it specifically addresses the potential for cost savings in the context of the IT function.