OUTSOURCING PROJECTS
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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
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Onshore outsourcing – engaging another company
within the same country for services
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Near shore outsourcing – contracting an
outsourcing arrangement with a company in a nearby country
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Offshore outsourcing – using organizations from
developing countries to write code and develop systems
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Big selling point for offshore outsourcing “inexpensive
good work”
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Factors driving outsourcing growth include;
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Core competencies
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Financial savings
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Rapid growth
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Industry changes
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The Internet
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Globalization
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According to PricewaterhouseCoopers “Businesses
that outsource are growing faster, larger and more profitable than those that
do not”
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Most organizations outsource their noncore
business functions, such as payroll and IT
OUTSOURCING BENEFITS
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Outsourcing benefits include;
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Increased quality and efficiency
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Reduced operating expenses
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Outsourcing non-core processes
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Reduced exposure to risk
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Economies of scale, expertise and best practices
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Access to advanced technologies
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Increased flexibility
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Avoid costly outlay of capital funds
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Reduced headcount and associated overhead
expense
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Reduced time to market for products or services
OUTSOURCING
CHALLENGES
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Outsourcing challenges include;
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Contract length
1.
Difficulties in getting out of a contract
2.
Problems in foreseeing future needs
3.
Problems in reforming an internal IT department
after the contract is finished
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Competitive edge
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Confidentiality
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Scope definition
If you run a design company, it probably isn't the best idea to outsource all your design work. You want to be able to fully control most work related to the core mission of your business. However, other services such as data entry, email management or Web copy creation may all be good candidates to entrust to outside workers.
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A complete, detailed proposal is most likely to get you quality bids from freelance workers. To reduce the number of irrelevant bids you may receive, be sure you clearly spell out the job timeframe, budget and any other requirements.
4. Choose wisely and start small
Again, you are accessing a large pool of writers from various backgrounds. Carefully review portfolios and resumes. In addition, contact potential candidates through the sites' messaging systems to determine their style of communication. This is particularly important when considering overseas providers who may not be native English speakers. When you are ready to select a candidate, start with a couple of small tasks before handing over significant duties to the worker.