The purchase of an
externally produced good or
service that was previously
produced internally
Outsourcing
Advantages
– Economy
– Predictability
– Frees up human resources
Disadvantages
– Loss of control
– Vulnerability of strategic information
– Dependency
Comparison of Systems Development Approaches
Approach Features Advantages Disadvantages
Systems Lifecycle Sequential step-by-step Necessary for large Slow and expensive
(Waterfall) process complex systems Discourages changes
Written specification and projects Massive paperwork to manage
and approvals
Limited role of users
Prototyping Requirements specified Rapid and inexpensive Inappropriate for large, complex
dynamically with Useful when systems
experimental system requirements are Can gloss over steps in analysis,
Rapid, informal, and uncertain or when end- documentation, and testing
iterative process user interface is
User interacts with important
prototype Promotes user
participation
End-user Systems created by end Users control systems- Can lead to proliferation of
Development users using fourth- building uncontrolled information
generation software Saves development time systems
tools and cost Systems do not always meet
Rapid and informal Reduces application quality assurance standards
Minimal role of IT dept backlog
Comparison of Systems Development Approaches
Approach Features Advantages Disadvantages