Jumaat, 7 Mac 2014

Chapter 19- Outsourcing in the 21 century

Outsourcing projects
  • Insourcing-a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems.
  • Outsourcing- an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.s.
  • Onshore outsourcing-engaging another company within the same country for the service.
  • Nearshore outsourcing-contracting outsourcing arrangement with a company in nearby country.
  • Offshore outsourcing-using organizations from developing countries to writes code and develop systems.
 Factors driving outsourcing growth:-Core competencies, financial saving, rapid growth, the internet.

Outsourcing benefits
  1. Increased quality and effiency
  2. Reduced operating expenses
  3. Outsourcing non-core processes
  4. Increased flexibility
Outsourcing challenges
  1. Competitive edge
  2. Confidentiality
  3. Scope definition
  4. Contract length-difficulties in getting out of the contract and problems in foreseeing future needs.

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