Questions On Outsourcing And Outsourcing Essay

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CIT-342/IS-623 - Assignment #2 Dr. Michael Coakley 1. What is outsourcing? Identify two outsourcing arrangements. Identify two reasons for outsourcing. Ans :- Outsourcing is also known as business process outsourcing, through which a company can heir either an individual or another company to handle your business .This individual or company can be both individual or international. Due to this process one can hand over responsibility of some or all of an organization’s information systems applications and operations to an outside firm. Examples :- Shell Oil outsource spending: $3.2 billion (2008) Shell’s outsourcing vendors (2008-2011): EDS, T-Systems, AT&T, IBM, Logica, Wipro, Accenture. Capgmini , Infosys are some other examples. Two reason for out sourcing are :- Cost-effectiveness :- Labor costs are among the primary reasons why companies choose to outsource. When properly executed it has a defining impact on a company 's revenue recognition and deliver tremendous savings. Free up internal resources :- freeing up internal resources will help, to use them for some other purpose. This is the main reason for which company do outsourcing. 2. Briefly identify six sources of software. Ans :- Information technology services firm :- Help companies develop custom information systems for internal use.
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