Learning objectives of this chapter include: Explain the business benefits and challenges of outsourcing, identify the three primary outsourcing options, summarize a list of leading offshore outsourcing countries, summarize a list of up-and-coming offshore outsourcing countries, summarize a list of rookie offshore outsourcing countries, describe the future trend of multisourcing and how it can support a business need for outsourcing. | BUSINESS PLUG-IN B13 Strategic Outsourcing LEARNING OUTCOMES Explain the business benefits and challenges of outsourcing Identify the three primary outsourcing options Summarize a list of leading offshore outsourcing countries LEARNING OUTCOMES Summarize a list of up-and-coming offshore outsourcing countries Summarize a list of rookie offshore outsourcing countries Describe the future trend of multisourcing and how it can support a business need for outsourcing INTRODUCTION Onshore outsourcing is the process of engaging another company within the same country for services Nearshore outsourcing refers to contracting an outsourcing arrangement with a company in a nearby country Offshore outsourcing is using organizations from developing countries to write code and develop systems OFFSHORE OUTSOURCING OFFSHORE OUTSOURCING OUTSOURCING OPTIONS Big selling point for offshore outsourcing “inexpensive good work” The Leaders Canada India Ireland Israel Philippines . | BUSINESS PLUG-IN B13 Strategic Outsourcing LEARNING OUTCOMES Explain the business benefits and challenges of outsourcing Identify the three primary outsourcing options Summarize a list of leading offshore outsourcing countries LEARNING OUTCOMES Summarize a list of up-and-coming offshore outsourcing countries Summarize a list of rookie offshore outsourcing countries Describe the future trend of multisourcing and how it can support a business need for outsourcing INTRODUCTION Onshore outsourcing is the process of engaging another company within the same country for services Nearshore outsourcing refers to contracting an outsourcing arrangement with a company in a nearby country Offshore outsourcing is using organizations from developing countries to write code and develop systems OFFSHORE OUTSOURCING OFFSHORE OUTSOURCING OUTSOURCING OPTIONS Big selling point for offshore outsourcing “inexpensive good work” The Leaders Canada India Ireland Israel Philippines The Leaders Canada The Leaders India The Leaders Ireland The Leaders Israel The Leaders Philippines The Up-and-Comers Brazil China Malaysia Mexico Russia South Africa The Up-and-Comers Brazil The Up-and-Comers China The Up-and-Comers Malaysia The Up-and-Comers Mexico The Up-and-Comers Russia The Up-and-Comers South Africa The Rookies Argentina Chile Costa Rica New Zealand Thailand Ukraine The Rookies Argentina The Rookies Chile The Rookies Costa Rica The Rookies New Zealand The Rookies Thailand The Rookies Ukraine THE CHALLENGES OF OUTSOURCING Outsourcing challenges include Contract length Difficulties in getting out of a contract Problems in foreseeing future needs Problems in reforming an internal IT department after the contract is finished Competitive edge Confidentiality Scope definition Future Trends Outsourcing is becoming less of a cost-saving strategy and more an overall context for business .
