Outsourcing : Outsourcing And Outsourcing

1541 WordsAug 30, 20157 Pages
Abstract In the past few years, although outsourcing has been seen as a common method used to achieve a successful business, many literatures on Information System still believe that most of the software could be better off build in-house and this can also be supported with the fact that there are evidences of organisations that took a significant damage from outsourcing. Therefore, whether or not a company should outsource part of their projects, it all depends on how the organisation manages its outsourcing system. This paper is going to examine a little bit of outsourcing challenges, outsourcing management processes and as well as the better ways to obtain full benefits from outsourcing. Introduction Outsourcing is a technique that allows a company to subcontract part of the business functions. In general, there are three different types of outsourcing: (Feenstra & Jansen 2010) - Onshore outsourcing: outsourcing company is located in the same country - Near-shore outsourcing: outsourcing company is located in a nearby country - Offshore outsourcing: outsourcing company is located in a nearby country As globalisation becomes more of a commonplace, outsourcing has become a significant strategy for a company to consider when managing a project. Apart from that, many organisations have also assigned some of their projects to external parties due to intense competition in the market (Hamel 2014). Even though outsourcing seems to be able to bring in a lot of benefits
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