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Tuesday, 4 March 2014

Outsourcing in the 21st century (Chapter 19)

Outsourcing Projects
Outsourcing is an arrangement by which one organization provides a services or services for another organization that choose not to perform them in-house .
  •         Onshore outsourcing – engaging another company within the same country for services .
  •          Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country .
  •          Offshore outsourcing – using organization from development countries to write code and develop systems .

Outsourcing benefits
  •           Increased  quality and efficiency of a process
  •           Reduced operating expenses
  •           Resources focused on core profit
  •           Reduced exposed to risks involved capital

Outsourcing challenges
  •           Contract length
  •           Competitive edge
  •           Confidentiality
  •           Scope definition 

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