Chapter 15 – Outsourcing in the 21st Century Outsourcing Project Insourcing (in-house-development) – A common approach using the professional expertise within an organization to develop and maintain the organization’s information technology systems Outsourcing – An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house Onshore outsourcing – engaging another company within the same country for services Near shore 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 Big selling point for offshore outsourcing “inexpensive good work” Factors driving outsourcing growth include; Core competencies Financial savings Rapid growth Industry changes The Internet Globalization According to Price
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Summary of Mgt 300