Many companies are looking to outsource development and maintenance of their application software. Common reasons that companies outsource application software are to reduce their costs, improve quality, obtain flexible staffing levels, and obtain improved service and support so they can focus on their core competence such as, designing clothes, managing equity portfolios, or running hospitals. Choosing whether to outsource or not is a strategic decision for a company. Once a company has decided to outsource, however, it must still choose an outsourcing approach that best fits it needs. This paper will describe the many different options for application software outsourcing, including the advantages and disadvantages of each alternative.
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software outsourcing. The specific project model and the supplemental model can both be setup as on-site or off-site models. In the off-site model, the buyer engages with an outsourcer who has a development center in India, China, the Philippines or some other low cost location. Much or all of the programming, testing, quality assurance, documentation, and other tasks are performed in the off-site location. There are several advantages to the off-site model. First and foremost is cost. Typical companies