CHAPTER 19 : OUTSOURCING IN THE 21st CENTURY
Two basic options are available to organisations wishing to develop and maintain their information systems :-
- Insourcing ---> is a common approach using the develop and maintain the organization's information technology systems
- 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