Monday, 10 March 2014

Chapter 19 : Outsourcing in the 21st Century

Outsourcing Projects

  • Insourcing is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems
  • Outsourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
Outsourcing benefits
  • Increased quality and efficiency of a process, service, or function
  • Reduces operating expenses
  • Resources focused on core profit-generating competencies
  • Reduces exposure to risks involved with large capital investments
  • Access to outsourcing service provider's economies of scale
  • Access to outsourcing service provider's expertise and best-in-class-practise
  • Access to advanced technologies
  • Increased flexibility with the ability to respond quickly to changing market demand
  • costly outlay of capital funds
  • Reduced head count and associated overhead expense
  • Reduced frustration and expense related to hiring and retaining employees in an exceptionally tight job market
  • Reduced time to market to products or services
Outsourcing challenges
  • Contract length
  • Competitive edge 
  • Confidentiality
  • Scope definition

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