CHAPTER 19 : OUTSOURCING THE 21ST CENTURY
This is chapter 19 – OUTSOURCING IN THE 21ST CENTURY
OUTSOURCING PROJECTS
- Insourcing (in house development) – common approach using the profesional expertise within an organization to develop and maintain the organization’s information technology system
- Outsourcing – an arrangement by which one organization provides a service or services for aother organization that chooses not to perform them in house.
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| reasons company outsource |
- Onshore outsourcing – engaging another company within the same country for services
- Nearshore outsourcing - contracting an outsourcing arrangement with a company in nearby country. Often this country will share a border with a native country.
- Offshore outsourcing – using organizations from developing countries to write code and develop systems. The country is geographically far away.
OUTSOURCING BENEFITS
- - Increased quality and efficiency of a process, service or function
- - Reduce operating expenses
- - Access to advanced technologies
- - No costly outlay of capital funds
- - Reduce time to market for products or services.
OUTSOURCING CHALLENGES
- Contract length
- Competitive edge
- Confidentially
- Scope definition
