Leads the project team to forgo proper testing and documentation Outsourcing the delegation of specific work to a third party for a specified length of time, at a specified cost, and at a specified level of service. Cuts costs and reduces time to market. 5 main reasons behind the rapid growth of the outsourcing industry 1. Globalization (increased competition both with native company and outsourcing companies, outsourcers can deliver a company's international services; 2. The Internet (e-business has reduced barriers to entry); 3. Growing economy and low unemployment rate (harder and more expensive to grow a competitive workforce domestically); 4. Technology (companies often lack
the resources, workforce, or expertise to keep up to rapidly advancing technology); 5. Deregulation (open markets means more competition) 4 forms of IT outsourcing for software development 1. Purchase existing software; 2. Purchase existing software and pay the publisher to make certain modifications; 3. Purchase existing software and pay the publisher for the right to make modifications yourself; 4. Outsourcing the development of an entirely new and unique system forwhich no software exists Outsourcing process vs. SDLC similar: beginning with planning and defining project scope; different: turn over much of the design, development, testing, implementation, and maintenance steps to another organization Request for proposal (RFP) a formal document that describes in excruciating detail your logical requirements for a proposed system and invites outsourcing organizations to submit bids for its development. Eventually it becomes the foundation for a legal and binding contract into which your organization and the vendor will enter. Service level agreement (SLA) a formal contractually obligated agreement between two parties. In the context of systems development, defines the work to be done, the time frame, the metrics that will be used to measure the success of the systems development effort, and the costs. If the vendor will be providing post-development maintenance and support, the SLA outlines those activities, their costs, and key metrics by which the success of those activities will be measured. Service level specification (SLS) aka service level objective (SLO). A supporting document to the SLA similar to a contract addendum that includes technical specifications 2 most important documents in the outsourcing process 1. RFP 2. SLA 9 steps in outsourcing process 1. Planning; 2. Define project scope; 3. Select a target system; 4. Establish logical requirements (identification of the business requirements drives the entire systems development effort); 5. Develop a RFP; 6. Evaluate RFP returns and select a vendor (according to a scoring mechanism you identified in the RFP); 7. Create a SLA; 8. Test and accept the solution (develop detailed test
plans and test conditions that test the entire system, accepting a solution involves granting your sign-off on the system which releases the vendor from any further development efforts or
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- Fall '08
- Project Management, Systems Development Life Cycle, business requirements