Outsourcing in broad terms is a transfer of some business functions or components
of business processes to an outside contractor. Outsourcing means a performing
of specific tasks, business functions or business processes by outside organization
that usually fall out of company's core competencies but, however, are crucial
for regular functioning of business.
Types of Software Development Outsourcing:
In-house software development (no outsourcing).
Many organizations have their
own IT departments catering to their software needs.
These organizations develop the required software
and information systems within their own capacity
and productivity limits.
Product Component Outsourcing.
In
product component outsourcing, the developer is contracted
to develop one or several parts of a software system.
In case of complex systems, when the organization does
not have the capacity or required skill to develop
a particular component such component is outsourced.
In outsourcing parts of software development cycle,
the customer organization contracts for an external
group to perform all or certain functions of one or
more of their process steps.
Software Development Order (total
outsourcing).
In this type, the organization outsources
each and every activity associated with the software,
which includes design, development, programming,
testing and maintenance. The main benefit of this
type of outsourcing is to focus on the organization's
core activities.
