CHAPTER 19 : OUTSOURCING IN THE 21st CENTURY

Two basic options are available to organisations wishing to develop and maintain their information systems :- 

1. Insourcing ---> is a common approach using the develop and maintain the organization's information technology systems
2. Outsourcing ---> is an arrangement by which one organization that chooses not to perform them in-house

3 forms of outsourcing options a project must consider are :- 

• onshore outsourcing = engaging another company within the same country for services
• nearshore outsourcing = contracting an outsourcing arrangement with a company in a nearby country. Often this country will share a border with the native country.
• offshore outsourcing = using organizations from developing countries to write code and develop systems. The country is geographically far away.

Factors affecting the growth of the outsourcing market :-

• core compentencies
• financial savings
• rapid growth
• industry changes
• the internet
• globalization