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.
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ability to meet the strategic needs of the business today and into the future. Each model has advantages and disadvantages, and should be weighed carefully against the other alternatives. This will help determine which model to implement, as well as determine which kind of provider to select. The advantages of outsourcing are attainable, but proper planning and strategy are critical to attaining this value. About the Author A.B. Maynard has over twenty years of technology, industry, management