Chapter 19 : Outsourcing in the 21st century.

HELLO there people on earth :) 

           As we all know we are all leaving now in a 21st century, many things has changed.....in IT we can see a HUGE change in the way we Outsource. There are many advantage and disadvantage. So today i shall walk you through the changes it has in the outsourcing process :)

OUTSOURCING PROJECTS

> Insourcing (in-house-development) as 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.

The three different forms of outsourcing options a project must consider are:

1. Onshore outsourcing – engaging another company within the same country for services.

 2. Near shore outsourcing – contracting an outsourcing arrangement with a company in a nearby country.

   3 .Offshore outsourcing – using organizations from developing countries to write code and develop systems.

Some of the influential drives affecting the growth of the outsourcing market include:

> Core competencies.

> Financial savings.

> Rapid growth.

> Industry changes.

> The Internet.

> Globalization.

OUTSOURCING BENEFITS

  Amog the outsourcing benefits include:

-  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.

-  Avoid costly outlay of capital funds.

-  Reduced headcount and associated overhead expense.

-  Reduced time to market for products or services.

Lastly we have.....

OUTSOURCING CHALLENGES

 Outsourcing challenges include:

> Contract length:

1. Difficulties in getting out of a contract.

2. Problems in foreseeing future needs.

3. Problems in reforming an internal IT department after the contract is finished.

> Competitive edge.

> Confidentiality.

> Scope definition. 

                                                                                                                - THE END -

P/S: HERE  IS A WEB THAT I FOUND THAT MIGHT GIVE YOU A CLEARER IMAGE OF THIS TOPIC :)
http://online.wsj.com/news/articles/SB10001424052748703882404575520232436064498