Outsourcing Application Development

Paper Summary:

The paper explores how organizations have become reliant on timely information acquisition and processing in order to remain competitive. The paper explains that, by outsourcing, these organizations are able to take advantage of their outsourcing partner's expertise and economies of scale. The paper further examines how these companies are able to reduce costs by eliminating in-house development staff and associated costs. The paper concludes that all of these advantages equate to a competitive advantage that is increasingly important in today's hyper-competitive world.

From the Paper:

"There are a plethora of benefits to outsourcing application development, for organizations. First, outsourcing this often-critical task allows companies to focus on their core business of the enterprise. Without the worry of these ancillary items, the organization can concentrate on what their unique business is truly about. This, in turn, allows the company to provide a higher level of service to their customer (Phillips; Siemers).
Organizations must investigate the costs of outsourcing in comparison to the costs of internal application development, including the recruiting and retaining of internal development staff (Wood). Most companies discover that there is a significant cost advantage to outsourcing application development."

Sample of Sources Used:

• Benamati, J. & Rajkumar, T. "The Application Development Outsourcing Decision." The Journal of Computer Information Systems 42(4) Summer 2002: p. 35-43. Proquest. Proquest. University of Phoenix, Phoenix, AZ. February 11, 2006 <http://proquest.umi.com>.
• Markus, M. & Benjamin, R. "Change Agentry - The Next IS Frontier." MIS Quarterly 20(4) 1996: p. 385-407. Proquest. Proquest. University of Phoenix, Phoenix, AZ. February 11, 2006 <http://proquest.umi.com>.
• Phillips, J. "Outsourcing High Tech Services." ARMA Records Management Quarterly 26(2) Apr 1992: p. 40-43. Proquest. Proquest. University of Phoenix, Phoenix, AZ. February 11, 2006 <http://proquest.umi.com>.
• Siemers, R. "Meet the New Outsourcing." American Bankers Association Banking Journal 87(6) Jun 1995: p. 52-54. Proquest. Proquest. University of Phoenix, Phoenix, AZ. February 11, 2006 <http://proquest.umi.com>.
• Wood, R. "Organizational Theory and Behavior Issues and Impacts in an E-Business Context." Futurics 24(1/2) 2000: p. 4-14. Proquest. Proquest. University of Phoenix, Phoenix, AZ. February 11, 2006 <http://proquest.umi.com>.

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