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Subcountracts And Outsourcing

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Running head: OFFSHORE SOFTWARE OUTSOURCING 1

An Insight into Key Aspects of Offshore Software Outsourcing

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OFFSHORE SOFTWARE OUTSOURCING 2

The purpose of the present paper is to analyze and discuss the role, process, and

importance of outsourcing in projects and subcontracting. An illustrating example is also

provided. It is argued that software outsourcing plays a major role in contemporary business and

companies producing software or which are in need of it are no exception to this phenomenon.

Software outsourcing can be defined as a contract-based relationship between an

organization and a customer where the customer contract out full or a portion of their software

development activity to a specific supplier or set of suppliers who is/are responsible to provide

specific services for remuneration. Software outsourcing has become very common in the

modern economy and it is regarded as an established business practice in the United States and

other countries (Khan & Khan, 2013).

The importance of software outsourcing is given by its potential impact on the business.

For instance, outsourcing a contract can require a significant coordination cost, and the inability

to achieve such a coordination can have a strong negative impact on the business. For this

reason, outsourcing requires a careful consideration of all the processes involved in it and the use

of theories and practices that have characterized past outsourcing projects. The most important

process in an outsourcing contract can be defined as belonging to either the pre-contract phase

and the post-contract one. During the pre-contract phase, all the conditions that will ensure the

successful completion of the project must be established. For instance, in order to ensure that an

outsourcing contract will be durable, it is important that all parties involved developing a clear

definition of the scenario that will ensure its successful completion. In other words, a proper

software outsourcing contract must meet specific standards in order to ensure that the desired

goals will be achieved. During the post-contract phase, on the other hand, differences between

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Running head: OFFSHORE SOFTWARE OUTSOURCING An Insight into Key Aspects of Offshore Software Outsourcing 1 OFFSHORE SOFTWARE OUTSOURCING 2 The purpose of the present paper is to analyze and discuss the role, process, and importance of outsourcing in projects and subcontracting. An illustrating example is also provided. It is argued that software outsourcing plays a major role in contemporary business and companies producing software or which are in need of it are no exception to this phenomenon. Software outsourcing can be defined as a contract-based relationship between an organization and a customer where the customer contract out full or a portion of their software development activity to a specific supplier or set of suppliers who is/are responsible to provide specific services for remuneration. Software outsourcing has become very common in the modern economy and it is regarded as an established business practice in the United States and other countries (Khan & Khan, 2013). The importance of software outsourcing is given by its potential impact on the business. For instance, outsourcing a contract can require a significant coordination cost, and the inability to achieve such a coordination can have a strong negative impact on the business. For this reason, outsourcing requires a careful consideration of all the processes involved in it and the use of theories and practices that have characterized past outsourcing projects. The most important process in an outsourci ...
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Tags: outsourcing analyze projects Sub-contracting