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The term software outsourcing
has been described as a situation where in a customer
contacts a software development company for the part
or complete development of a software product or delivering
a IT enabled service. The level & type of work agreed
upon differs in each case. The software outsourcing
with an external organization can be for development
of complete or partial software products, the purchase
of packaged or customized software products or involving
the vendor in the full software development cycle &
also contract with him for maintenance after delivery.
The different types of software outsourcing can be broadly
described as below:
1. 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.
2. 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.
3. Software Acquisition
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 offshore
software outsourcing is to focus on the organizations
core values.
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