INSOURCING(IN-HOUSE-DEVELOPMENT)
A common
approach using the professional expertise within an organization to develop and
maintain the organization ‘s information technology system.
OUTSOURCING
An arrangement
by which one organization provides a service or services for another
organization that chooses not to perform
them in-house.
DIFFERENT FORMS
OF OUTSOURCING OPTIONS A PROJECT MUST CONSIDER
INFLUENTIAL
DRIVERS AFFECTING THE GROWTH OF THE OUTSOURCING
- Core Competencies
- Financial Savings
- Rapid Growth
- Industry Changes
- The Internet
- Globalization
OUTSOURCING
BENEFITS
- Increased quality and efficiency
- Reduced operating expenses
- Outsourcing non-core processes
- Reduce exposure to risk
- Reduced time to market products and services
- No costly outlay of capital funds
OUTSOURCING
CHALLENGES
~Contract length
- Difficulties in getting out of a contract
- Problems in foreseeing future needs.
- Problems in reforming an internal IT department after the contracts is finished.
~Competitive edge
~Confidentially
~Scope definition
