chapter 19: outsourcing in the 21st Century

 

assalamualikumm :) 

whoot whoot we now in the last chapter of Business IT

yeahhh !

okeyy chill ! what are this chapter all about ?

 chapter 19, or Outsourcing in the 21st Century are about outsourcing project.

1st, what is 21st century ?

wow ! 

okeyy then.. next what is outsourcing projects?

in this high-speed global business environment, an organization needs to maximize its profits, enlarge its market share, and restrain its ever-increasing costs.

two basic options are available to organizations wishing to develop and maintain their information system which is:

i- insourcing

ii- outsourcing

i- insourcing.

 Insourcing (in-house-development) – a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems 

ii- outsourcing.

Outsourcing – an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house

The three different forms of outsourcing option a project must consider are:

•         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 organizations from developing countries to write code and develop systems

Factors driving outsourcing growth include:

             •         Core competencies

             •         Financial savings

             •         Rapid growth

             •         Industry changes

             •         The Internet
             •         Globalization

Outsourcing benefits include:

•    Increased quality and efficiency

•    Reduced operating expenses

•    Outsourcing non-core processe

•    Reduced exposure to risk

•    Economies of scale, expertise, and best practices

•    Access to advanced technologies

•    Increased flexibility

•    Avoid costly outlay of capital funds

•    Reduced headcount and associated overhead expense

•    Reduced time to market for products or services

Outsourcing challenges include:

•         Contract length

–     Difficulties in getting out of a contract

–     Problems in foreseeing future needs

–     Problems in reforming an internal IT department after the contract is finished

•         Competitive edge

•         Confidentiality

•         Scope definition

the end :)

thank you for reading my blog..

till we meet again in another chapter and another day

xoxo :D