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MGT 300 - CHAPTER 15

Chapter 15 - Outsourcing in the 21th century OUTSOURCING PROJECTS ~ 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 ~ Reasons companies outsource ~  Onshore outsourcing -  engaging another company within the same country for services ~  Nearshore outsourcing -  contracting an outsourcing arrangement with the company in a nearby country ~  Offshore sourcing  - using organization from developing countries to write code and develop system ~ Big selling point for offshore outsourcing "inexpensive good work" ~ Factors driving outsourcing growth include :  Core competencies  - Many companies have recently begun to consider outsourcing as

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