PMM 2nd Opp June 2019

3.1 Discuss why you rather outsource your software development than develop it in-house? (30 Marks)

Please discuss it in a broad way.

1. Why sourcing

2. Tactical sourcing

3. Sourcing decisions

4. Global sourcing

5. Outsourcing (to make or buy decisions)

6. Buying (outsourcing)- cost advantage, insufficient capacity, access to a large pool of workers, quality, improved customer service

7. Advantages and disadvantages of outsourcing

8. Making (In-house) decisions- protect proprietary technology, no competent supplier, better quantity control, lower cost, control of lead-time, transportation, and warehousing cost.

9. Advantages/disadvantages of insourcing