Professional Documents
Culture Documents
Chapter 15
Chapter 15
IT in BUSINESS
Insourcing (in-house-development) a
common approach using the professional
expertise within an organization to develop
and maintain the organization's
information technology systems
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
OUTSOURCING PROJECTS
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.
OUTSOURCING PROJECTS
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
OUTSOURCING PROJECTS
According to PricewaterhouseCoopers
Businesses that outsource are growing
faster, larger, and more profitable than
those that do not
OUTSOURCING PROJECTS
Confidentiality
Confidential information might be breached by an
outsourcing service provider, especially one that
provides services to competitors
Scope definition
Scope creep is a common problem with
outsourcing agreements
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