Discussion Questions 1 through 8 Pages 486-487 1. Reasons why organizations outsource: • Reduce both fixed and recurrent costs • Allow the client organization to focus on its core business • Access skills and technologies • Provide flexibility • Increase accountability Most organization use some form of outsourcing to meet their information technology needs, spending most money within their own country. 2. A make-or-buy decision is when an organization decides if it is in its best interest to make certain products or perform certain services inside the organization, or if it is better to buy from an outside organization. The main types of contracts if you decide to outsource are fixed-price or lump-sum, cost-reimbursable, hybrids like time and materials, or unit price contracts, as described in the text. The advantages and disadvantages with any of these is the risk factors. 3. Many information technology professionals don’t have experience writing RFPs and evaluating proposals for information technology projects. Most haven’t had much hand-
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