Question:

(a) What could be the motivations for a large multinational to offshore its application development?

(b) What could be the risks of offshoring application development for the multinational?

(c) Describe a framework which would help the multinational decide which IT activities to outsource.

(d) Use the above framework to make recommendations in the cases below:

i. A university having to develop a platform for delivering courses in a distance mode. The university does not have experienced IT staff. Although there are different packages on the market, the university believes it needs a customised software to be able to give more special attention to its students.

ii. A call centre opening in an emerging outsourcing destination. It does not consider that the system will be its competitive edge - it considers that the low cost of its services and quality of service delivered by its staff to be more important.