Outsourcing

Outsourcing, in broad terms, is the purchase of goods or services from an external entity that were previously provided internally. Outsourcing is a generic term used for a broad range of functions that are selectively contracted to an external service provider.

Contracting (or subcontracting) with an external organization for:

• Software Development Services -
  The development of complete or partial software products /projects.
  The purchase of packaged or customized software products.
  Activities to aid in the software development life cycle
  

• Quality Assurance -
  Development of Use Cases
  Unit Testing, System Testing, User Acceptance Testing
  

• Administrative Services -
  Procurement Services (purchasing, inventory management, VMI)
  G&A Services (Accounting, AR, AP, Payroll, GL, HR, etc)
  

Types of outsourcing -

1. In-House Building (No outsourcing)
   Many organizations have their own Information Technology departments catering to their needs of software. These organizations develop the required software and information systems within their own capacity and limits.

2. Product Component outsourcing
   In Product Component outsourcing, the developer is contracted to develop a part of an overall system. In case of large and complex systems where the organization does not have the capacity or required skill to develop a particular thing is outsourced.

3. Process Component outsourcing
   In Process Component outsourcing the customer organization simply contracts for an external group to perform all or part of the functions of one or more of their process steps or components.

4. Software Acquisition (Total outsourcing)
   In this type, the organization outsource each and every activity associated with the software which includes design, development, programming, testing and maintenance .The main reason for such type of outsourcing is to focus on the organizations core values.

Benefits of Outsourcing -

1. Financial restructuring:
   Improving the business's financial position while reducing or at least containing costs

2. Core competence: 
   Redirecting the business and IT into core competences.

3. Technology Catalyst: 
   strengthening resources and flexibility in technology and service to underpin the business strategic direction.

4. Business transition: 
   Facilitating and supporting major organization change.

5. Business Innovation: 
   Improving and innovating in processes, skills and technology, while mediating financial risk through the vendor, in order to achieve competitive advantage.

6. New market: 
7. direct profit generation through joint ventures and vendor partner.
   

Benefits:

• Financial reconstruction save cost
• Core Competence maximized
• Technology optimization
• Technical Architecture Expertise
• Total Outsourcing
• Business Blueprinting:
  
• Business Objectives
• Business Procedures
• Systems Design
• Systems Architecture

Offshore software development  Software development is a highly technical job. To develop software in-house requires time, skilled manpower, and expensive programs and equipment. Offshore development is a cost effective alternative to developing software in-house. Offshore development and Offshore Programming at Sysorex safeguards the client's intellectual property, proprietary software, and new development specifications with very high levels of security. Clients retain full ownership of all intellectual property rights and software source code at the completion of the project.    Offshore software development at Sysorex also provides you with immediate short-term access to a broad range of specialized technical skills and equipment. Offshore development allows your "A" team to focus on your core competencies. This means you get to market faster while maintaining your technological advantage.    Offshore software development is synonymous with flexibility. When facing a large project but of short duration, you can use Offshore software programming to limit the number of new employees and administrative support personnel you must take on. Sysorex allows you to double the number of programmers available for your project, and better yet we are just a phone call away.    For start-up companies, the benefits of Offshore software development can be monumental for the simple fact that it allows you to go farther on your venture capital dollars. The costs of Offshore software programming are much lower than hiring local resources to staff a project..    Offshore software development offers another major advantage: independence. Most software vendors or investors cannot conduct independent analyses of their own or their competitors' products. Sysorex not only performs development work, but also can obtain the competition's software for evaluation purposes for clients. This ability allows us to ask the questions you want answered and not disclose client identity.    Offshore software development has an extra benefit for other software developing companies, who by sub contracting out some of their most routine tasks to our company would be able to concentrate their workforce on the different tasks, which need their specific expertise. We would insure that perhaps unpleasant and perhaps more routine tasks still get done, saving their time for something of higher priority and importance.    To sum it up: Offshore software development at Sysorex allows you to cut production costs without the need to compromise on either speed or quality. Your operation becomes adaptable to increasingly complex and rapidly changing business environment. Ask yourself, can you afford not to go offshore when the competition is?

Offshore Development    Low cost development for low budget projects  Crucial for winning overseas projects  Project resource available instantly when requirements from resources fluctuate  Maintain architecture resources on project and provide fast COTS customisation  International (Language) transalation resources available

This information is the opinion of the company and not subject to body of knowledge in the literature.

http://www.sysorex.com/strategic-outs.htm