YOU KNOW ,every company that develops computer software asks a fundamental question : Is there a way that we can get the software and systems we need at a lower price? The answer to this question is not a simple one,and the emotion discussion that occur in response to the question is always lead to a single word: OUTSOURCING.
Outsourcing is extremely simple.Software engineering activities are contracted to a third party who does the work at lower cost and hopefully ,higher quality.Software work conducted with in a company reduced to a contract man agreement activity.
The decision to outsource can be either strategic or tactical.At the strategic level, business managers consider a significant portion of all software work can be contracted to other.At the tactical level, a project manager determines weather part or all of a project can be best accomplished by subcontracting the software work.
On the positive side,cost saving can usually be achieved by reducing the number of software people facility e.g. computers,infrastructure that supports them. on the negative side,a company loses some control over the software that it needs.Since software is a technology that differentiates its system service and product,a company runs the risk of putting the fate of its competitiveness into the hand of a third party.
