COMM 190 Chapter Notes -Application Software, Offshoring, Intellectual Capital
4 Dec 2013
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Document Summary
Outsourcing is the process of hiring another organization to perform a service. Any business activity in the value chain can be outsourced, from marketing and sales to logistics, manufacturing, or customer service. When a vendor is overseas, outsourcing is referred to as offshoring. Offshoring experience has shown that establishing clear requirements is the key to providing success in an offshoring agreement. Outsourcing can be an easy way to gain expertise. E. g. an organization wants to upgrade its thousands of user computers on a cost-effective basis. To do so, the organization would need to develop expertise in automated software installation, unattended installations, remote support, and other measures that can be used to improve the efficiency of software management. The organization might choose to hire a specialist company to perform this service since it is expensive and is not part of the company"s strategic direction.
