Question

Identify three types of IT/IS outsourcing

Answer 1

Three types of IT/IS outsourcing are :

1. Mnufacturing outsourcing : Manufacturing the products locally increases the cost of the final product because of the cost of the raw materials and the locally employed workforce. Outsourcing the manufacturing makes the cost per product much low.

2. Process-specific outsourcing : Many companies outsource their main processes revolving around their product. For example outsourcing the delivery of the products to a third party.

3. professional service outsourcing : In this outsourcing the professional tasks such as IT, legal, accounting etc are outsourced.