A) SOFTWARE ENGINEERING OUTSOURCING

It is apparent that many organizations today are making the decision to outsource. In today's global marketplace outsourcing has made itself accessible to many organizations on a National and International level. Offshore outsourcing has provided many businesses with the opportunity to harvest the benefits of lower labor costs and to exploit the value of less than par foreign currencies.

Through outsourcing companies today have the ability to develop competitive strategies that will leverage their financial positions in the ever competitive global marketplace.

Some of the major advantages that today's organizations can expect to obtain through outsourcing are:

The Ability to Purchase Intellectual Capital

Through outsourcing, today's businesses have the ability to utilize the technological know- how of other organizations. This allows businesses to find the specific requirements they need to implement their target objectives.

The Ability to Focus on Core Competencies

Outsourcing allows businesses to delegate non-vital projects they need completed to vendors. This ultimately provides an organization with the ability to focus on distinctive core competencies which will help yield long term benefits. If an organization experiences long term advantages from well developed core competencies they are said to have achieved a sustainable competitive advantage.

The Ability to Better Anticipate Future Costs

Organizations that choose to outsource have the ability to determine exact future costs. Prior to the contract development of any outsourcing agreement, the outsourcing company develops a request for proposal (RFP) document which highlights the major requirements and scope of the project which is to be outsourced. Through bids vendors have the ability to make offers to perform the outsourcing for the given project. When a bid has been accepted the organization has an exact figure illustrating what the expense will be to outsource the project.

The Ability to Lower Costs

Overall outsourcing is viewed by many organizations as a strong business tactic that ultimately is a superior economical approach to developing products and services.