When to Consider Development Outsourcing

by Ian S. Hayes

Whenever a company is considering developing a new system, it must first determine whether to build the new system from scratch or buy an off-the-shelf solution. If the new system is strategic or so unique that a prepackaged solution does not exist, then it makes sense to build the system from scratch. Building a system from scratch can be done using internal resources alone or by outsourcing the effort (or portions of it) to a development outsourcer. If the new system is not strategic and not unique, then it makes sense to investigate prepackaged alternatives. These alternatives include software packages, application service provider (ASP) offerings, and component-based solutions. Purchasing one of these prebuilt solutions is a form of outsourcing in its broadest sense, since an outside party was responsible for designing and building the system.

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When to Consider Development Outsourcing 17 May 2001