Question

Summarize two articles on IT sourcing and compare and contrast the sourcing approaches in each article. Identify the factors that were important in each sourcing strategy and whether the sourcing decision was strategic for the long term or tactical for the short term. Which strategy did you think was more effective and why?

Answer 1

There are basically two types of outsourcing

1. Multi-Sourcing
2. Out Sourcing

So in both the case we are paying someone else to get the services.
In the case of Multisourcing, we are taking services from various different partners and thus we can assemble all the things which we are getting. This is done in order to make sure that we are getting the best out of the market. Selection can be made for different partners and quality is maintained in this process. This is usually done by apple as they are sourcing different services from different partners in order to get the best in their product and also most of the things they are doing in the house as well.

In the case of Outsourcing, we simply outsource a complete service to some other partner. In this case, everything is taken care of by them.

If the sourcing work can be done in house and the workload is also more then it is best to go for inhouse as this can save a lot to the organization and quality of the final output is maintained. In the short term, we can go for sourcing when the business is not grown. But when the business is capable enough to generate revenue then it is best to do things inhouse rather than sourcing.

Thus sourcing is good for the short term but for the long term so as to save the profit with you and maintain the quality in the house is better.

Thanks