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