Oh yeahhh!! It's our final chapter nineteen! Do a dance people!!! Hoorahhh finally! Our last chapter is about Outsourcing in The 21st Century. The chapter is about outsourcing projects, outsourcing benefits and its challenges. It's a really really really really REALLY short one!
Outsourcing Projects
Insourcing (in-house development) is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems. Meanwhile outsourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.
Reasons why companies outsource.
Onshore outsourcing encourage another company within the same country for services.
Nearshore outsourcing contracting an outsourcing arrangement with a company in a nearby country.
Offshore outsourcing uses organization from developing countries to write code and develop systems.
Some of the factors driving outsourcing growth include:
- Core competencies
- Financial savings
- Rapid growth
- Industry changes
- The internet
- Globalization
The Benefits of Outsourcing
- Increased quality and efficiency
- Reduced operating expenses
- Outsourcing non-core processes
- Reduced exposure to risk
- Economies of scale, expertise and best practices
- Access to advanced technologies
- Increased flexibility
Outsourcing Challenges
There are four challenges such as:
- Contract length ( Difficult in getting out of contract, problems in foreseeing future needs, problems in reforming an internal IT department after the contract is finished)
- Competitive edge
- Confidentiality
- Scope definition
WOW PEOPLE!!! THIS IS THE END OF OUR CHAPTER. THANK YOU SO MUCH FOR READING, I APPRECIATE IT SO MUCH.
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