Introduction Outsourcing refers to the planned use of resources acquired from other agencies. The outsourced resources execute duties initially done by the people and machinery that internally performed the duties for the organization initially. After an assessment of the institution, the human resource department determines the need to introduce new resources to the organization (Weimer & Seuring 2009). In a corporation, the performance evaluation team can realize lack of enthusiasm among the internal staff. Alternatively, other company resources such as computers could require replacement making it imperative to device an action plan. Through outsourcing, organizations including IBM are able to get external labor-force, machinery, and communication resources in order to improve the quality of their work. Outsourcing has many advantages and disadvantages; it involves an entire facility shift especially for companies that replace their resources completely (Miozzo & Grimshaw 2011). Organizations that require new resources often sign contracts with agencies that supply the requisite human resources and machinery. Efficiency is paramount for organizations and outsourcing is a common means of getting the best resources for accomplishing tasks within the organization (Plunkett 2013). This paper intends to discuss how IBM benefits from outsourcing, and the demerits of assuming such a plan. IBM The International Business Machines Corporation (IBM) headquartered in Armonk, New York, United States, deals in production of technological devices. Many Banks use Automated Teller Machines and various scanners from the company. Besides physical production of such devices, IBM equally offers consultation services to various clients across the US and other countries in which it invests (Morschett, Klein, & Zentes 2010). Considering that IBM is a multinational corporation, it needs to keep up with competition from other electronic firms that are likely to provide affordable handheld computers to replace IBM products. The world is volatile and so is the consumer environment. The daily societal needs keep changing as the external environment and the competitors influence them. Research is an important element of a company such as IBM; it enables firms to offer services that fulfill the needs of the microenvironment and the macro-environment. As such, it is important for IBM to carry out a PEST-C analysis of its environment and a SWOT analysis of the organization. The two would be vital for IBM to device an outsourcing plan in order to replace the in-house team with new and creative individuals or machinery (Lasserre 2012). Companies such as Samsung, Apple, and HTC venture into new productions daily. In essence, each competing force strives to carry out research in order to understand consumer demand. Sometimes, the employees working in-house cannot provide the requisite human resources to increase production (Watson 2013). Consumer demands often change and become complex since resources will always be limited in comparison to consumers (Yanga, Wackerb, & Sheu 2012). Naturally, the supply and demand curve applies in this scenario since society expects IBM to device systems that succeed the existing products and services (Varajao