Outsourcing Collaborative Partnerships
Insourcing (in-house-development)
Outsourcing
Offshore outsourcing
a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems
an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house
In some cases, the entire IT department is outsourced, including planning and business analysis as well as the installation, management, and servicing of the network and workstations
Benefits from outsourcing
Increased technical abilities
Market agility
Financial savings
Outsourcing can range from a large contract under which an organization like IBM manages IT services for a company such as Xerox to the practice of hiring contractors and temporary office workers on an individual basis
Factors driving outsourcing growth
Rapid growth
Industry changes
Core competencies
The Internet
Business process outsourcing (BPO)
contracting of a specific business task, such as payroll, to a third-party service provider
Back-office outsourcing
Front-office outsourcing
Implementing BPO can assist with a cost-saving measure for tasks that an organization requires, but does not depend upon to maintain its position in the marketplace
using organizations from developing countries to write code and develop systems
According to Forrester Research, nearly half of all businesses use offshore providers, and two-thirds plan to send work overseas in the near future