Define outsourcing. Explain how Drucker’s statement “Your back room is someone else’s front room” pertains to outsourcing. Summarize the management advantages, cost advantages, and risks of outsourcing. Differentiate among outsourcing of IaaS, PaaS, and SaaS and give an example of each. Explain why international outsourcing can be particularly advantageous.

Describe skills you can develop that will protect you from having your job outsourced. Summarize the outsourcing risks concerning control, long-term costs, and exit strategy.