Outsourcing

Outsourcing involves contracting with outside professional services to meet specific business needs.
Outsourcing is an arrangement where one company provides services to another company that would otherwise have been implemented in-house.
An example is Telstra outsourcing its Call Centers to an Indian company.
An example, American Express hired IBM for about $4 billion over 7 years to manage its website, network servers, data storage and help desk operations.

• The advantage
• The advantage of outsourcing is that saving costs, indeed Optus hires people in India for call centers because average salaries of India is cheaper than Australian one.
• The disadvantage
• There could be some issues with language and different understanding about computer based information system and because of the different understanding the ideas people could argue and slow down the development.

• Factors affecting system development outcomes
• Development Phases
• System Investigation Phase
• System Analysis Phase
• System Design Phase
• System Implementation Phase
• System Maintenance Phase
• System Review Phase