Monday, 14 March 2016

CHAPTER 15 :Outsourcing in the 21st Century

19.1 Describe the advantages and   disadvantages of insourcing,   outsourcing, and offshore outsourcing

19.2 Describe why outsourcing is a   critical business decision

OUTSOURCING PROJECTS
v Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems
v Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
v Factors driving outsourcing growth include:
     §Core competencies
•Many companies have recently begun to consider outsourcing as a means to fuel revenue growth rather than just a cost-cutting measure.
     §Financial savings
•It is typically cheaper to hire workers in China and India than similar workers in the United States. 
§Rapid growth
•an organization is able to acquire best-practices process expertise. This facilitates the design, building, training, and deployment of business processes or functions.
§Industry changes
•High levels of reorganization across industries have increased demand for outsourcing to better focus on core competencies. 
§The Internet
•The pervasive nature of the Internet as an effective sales channel has allowed clients to become more comfortable with outsourcing.
§Globalization
•As markets open worldwide, competition heats up. Companies may engage outsourcing service providers to deliver international services


















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