Many companies are looking to outsource development and maintenance of their application software. Common reasons that companies outsource application software are to reduce their costs, improve quality, obtain flexible staffing levels, and obtain improved service and support so they can focus on their core competence such as, designing clothes, managing equity portfolios, or running hospitals. Choosing whether to outsource or not is a strategic decision for a company. Once a company has decided to outsource, however, it must still choose an outsourcing approach that best fits it needs. This paper will describe the many different options for application software outsourcing, including the advantages and disadvantages of each alternative.
internet uses advantage disadvantage
to get on the Internet bandwagon. Today, there is a much larger reliance on IT applications, and IT applications touch a much larger part of an average business. The result is that IT-related labor demand, and therefore costs, are still quite high. Additionally, expectations and desires for software features from users and packaged software customers, combined with new demands created by the advent of the Internet, have resulted in tremendous breadth and complexity in the software used by most companies.