List five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work back in-house? Why are some organizations beginning to use onshoring?

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Answer 1

Textbook Question

Chapter 12, Problem 1DQ

List five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work back in-house? Why are some organizations beginning to use onshoring?

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

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Answer 2

Textbook Question

Chapter 12, Problem 1DQ

List five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work back in-house? Why are some organizations beginning to use onshoring?

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 12, Problem 1DQ

List five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work back in-house? Why are some organizations beginning to use onshoring?

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 12, Problem 1DQ

List five reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations moving their software development work back in-house? Why are some organizations beginning to use onshoring?

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

Answer 8

Expert Solution

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Reasons to outsource:

To reduce fixed costs and capital investment as approaching other companies to do work helps in reducing initial inflow requirement to the project.
Improve accountability as a good contract helps reduce the risk of the company but reduce the daily requirements of supervision.
Focussing on core competency of the business. It might not be the more added value of the company. For example, a company can outsource manufacturing process while focussing on the design part.
Ensuring flexibility of operations to vary staff, production requirement easily as per demand.
Accessing expertise in skill and technology. Approaching expert professionals and organizations will only help to improve efficiency and results.

Answer 13

Expert Solution

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Answer 14

Expert Solution

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Explanation of Solution

Reasons for not to outsource:

Companies might need more control over a project, this monitoring might not be applicable in outsourcing.
Dependency over an external company can affect their performance. So, companies might avoid that.
The information might be of strategic importance and provide a competitive advantage. This cannot be shared with other companies in the market.

Answer 18

Expert Solution

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Answer 19

Expert Solution

Answer 20

Expert Solution

Answer 21

Expert Solution

Answer 22

Explanation of Solution

Reasons for organizations to move back IT projects in-house:

IT projects can be seen as services that be placed along with core activities.
If the organization is ahead of competitors in the market, software development can be moved in-house.

Answer 23

Expert Solution

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Explanation of Solution

Reasons to use on-shoring:

It contributes to the development of economy and ensuring improvement in investments and job opportunities in the local level.
It provides opportunity for better collaboration.
Also reduces the cost of operation and ensure low-cost of resources.