Outsourcing: Turning over responsibility of some or all of an organization's information systems applications and operations to an outside firm
Outsourcing Examples
A company that runs payroll applications for clients
A company that runs your applications at your site
Reasons to outsource
Cost-effective
Take advantage of economies of scale
Free up internal resources
Reduce time to market
Increase process efficiencies
System development is a non-core activity for the organization