What is outsourcing? Describe the advantages and disadvantages to ...

[naturalchemist]

What is outsourcing? Describe the advantages and disadvantages to outsourcing software development.
 
  What will be an ideal response?

Question 2

Systems development activities always take place in sequential order.
 
  Indicate whether the statement is true or false

[kalskdjl1212]

Answer to Question 1

In outsourcing, a firm hires an external organization to build or maintain part or all of its information systems needs. This can include software development and hosting applications, but the firm may also host any developed applications on its own hardware while having the vendor create and maintain software or systems. The vendor may be domestic or in another country (in offshore outsourcing).
The benefit to outsourcing is, in the case of domestic outsourcing, being able to develop systems that in-house staff may not have the time or skills to do. In the case of offshore outsourcing, a primary benefit is cost savings, as costs and salaries in foreign countries can be significantly less.
Disadvantages would include relinquishing some control over development, having third party firms access to privileged company data and information. It is also possible to underestimate costs in outsourcing, which include costs for transferring knowledge, cultural differences, productivity losses, and other human resource issues.

Answer to Question 2

FALSE

[naturalchemist]

Thanks for the timely response, appreciate it

[matt95]

Gracias!