MGT300 CHAPTER 15
CHAPTER 15 Outsourcing in the 21 st Century OUTSOURCING PROJECTS Ø Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems Ø Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house Ø Reasons companies outsource Ø Onshore outsourcing – engaging another company within the same country for services Ø Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country Ø Offshore outsourcing – using organizations from developing countries to write code and develop systems Ø Big selling point for offshore outsourcing “inexpensive good work” Ø Factors driving outsourcing growth include: o Core competencies • Many companies have re
