Many companies are looking to outsource development and maintenance of their application software. Common reasons that companies outsource application software are to reduce their costs, improve quality, obtain flexible staffing levels, and obtain improved service and support so they can focus on their core competence such as, designing clothes, managing equity portfolios, or running hospitals. Choosing whether to outsource or not is a strategic decision for a company. Once a company has decided to outsource, however, it must still choose an outsourcing approach that best fits it needs. This paper will describe the many different options for application software outsourcing, including the advantages and disadvantages of each alternative.
companies that offshore outsource
option is best for companies that are still running many applications that are twenty years old or more. Maintenance only : Buyers outsource the support for most or all of their legacy applications and perform all new development internally. The advantage is that many developers want to move forward to new technologies, and this approach satisfies their desire to remain current and to work on new stuff rather than maintaining old code. The disadvantage is the cost and time involved with knowledge