as well as varying factors that affect economic activity. You were also introduc

Question

as well as varying factors that affect economic activity. You were also introduced to organizational strategic decision making about the transactions that should be undertaken in-house and those that should be outsourced. For instance, if you were a manager of an automobile manufacturer, there would be multiple parts that other companies would supply that your organization probably would not produce themselves. To this regard, there may be a significant amount of money saved by having someone from the outside manufacture a tire rather than having your own company produce tires.

Now, let's say that you were a technology manager of an international banking operation seeking assistance for the development of a new company website. What would be the advantages of having this completed by your in-house information technology department, as opposed to outsourcing it to another company? Describe some of the challenges of using internal staff, as well as the potential challenges of using an outside company for this projec

with your own words

Explanation / Answer

Q1) Below are the advantages of developing a new company website in-house as opposed to outsourcing -

1. In-house team would be in a better position to understand the requirements of the firm as they are in the business and in the firm. This saves time and cost for the firm as it need not pay outside firms for developing the website.

2. Easy to reach out to the development team in case of any issues

3. In-house members own the development as they are doing it for their own firm

Below are the advantages of outsourcing -

1. Firm can outsource the development to more skilled resources in outsourced firms

2. Firm can concentrate on its core business rather than support services like IT

Q2) Below are the disadvantages of inhousing -

1. Availability of skilled resources and training the individuals on the skills

2. Firm might deviate from its core business

Below are the disavantages of outsourcing -

1. Control of schedule and quality of the project will be difficult as it is done by another firm

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