OUTSOURCING IN THE 21ST CENTURY

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

---

CREATING COLLABORATIVE PARTNERSHIPS

CHARACTERISTICS BUSINESS 2.0

CONTENT SHARING THROUGH OPEN SOURCING

• OPEN SYSTEM- consists of non proprietary hardware and software based on publicly known standard s that allow third parties to create add-on products to plug into or interoperate with the system. 
• SOURCE CODE- contains instructions written by a programmer specifying the actions to be performed by computer software.
• OPEN SOURCE- any software whose sources code is made available free for any third party to review and modify.

 USER-CONTRIBUTED CONTENT

• USER-CONTRIBUTED CONTENT-created and updated by many users for many users. Ex: youtube, flickr and Wikipedia. 
• REPUTATION SYSTEM-buyers post feedback on sellers

COLLABORATION INSIDE THE ORGANIZATION 

• COLLABORATION SYSTEM- set of tools that supports the work of teams or groups by facilitating the sharing and flow of information.
• COLLECTIVE INTELLIGENCE- collaborating and tapping into the core knowledge of all employees, partners, and customers.
• KNOWLEDGE MANAGEMENT- involve capturing, classifying, evaluating, retrieving, and sharing information assets. 
• OBJECTIVES-to be sure company’s knowledge of facts, sources of information and solution are available to all employees. 

 COLLABORATION OUTSIDE THE ORGANIZATION

• CROWDSOURCING- refers to the wisdom of the crowd. 
• ASYNCHRONOUS COMMUNICATION- communication such as email in which the message and the response do not occur at the same time. 
• SYNCHRONOUS COMMUNICATION- communications that occur at the same time such as IM or chat.

NETWORKING COMMUNITIES WITH BUSINESS 2.0

• SOCIAL MEDIA

Refers to website that rely on user participation and user-contributed content such as FACEBOOK, YOUTUBE and DIGG.

• SOCIAL NETWORK

An application that connects people by matching profile information .

• SOCIAL NETWORKING

Practice expending your business and/or social contacts by constructing a personal network.

• SOCIAL NETWORKING ANALYSIS (SNA)

Maps group contacts identifying who knows each other and who work together.

SOCIAL TAGGING

• tags : specific keywords or phrases incorporated into website content for means of classification or taxonomy.
• social tagging : describe the collaborative activity of marking share online contents with keywords tag as a way to organize it for future navigation.

Business 2.0 Tools for Collaborating

1. blog
2. wikis
3. mashups

---