IT Industry outsourcing as a whole{4}

The article I chose to blog about on this last week of class is called “Information Systems; New Reserachon Information Systems from University of Paderborn Summarized” where the author S. Zammermann talks about how the IT industry as whole adapted to the modern portfolio theory to ensure an optimal and full allocation of given software development projects to available sites. The Modern Portfolio Theory has two contributions. First, It provides a conceptual foundation for the application of Modern Portfolio Theory within the scope of global sourcing of software development projects by ITSPs. Second, It is the first to actually apply Modern Portfoilio They using a real world business case. The researchers concluded that using their “model leads to considerably different project allocations to the available delivery centers of our case company as well as to substantially lower costs of sourcing portfolio.”

I like this article because it’s talking about a big issues that is costing us alot of jobs known as Outsourcing. I understand why companies chose to outsource because it is far cheaper to pay someone over seas 1/5 of what you would pay here, but at the cost of quality. At the end of the day what most companies want is to be able to product a high quality product, with high quality support. I believe companies could benefit from paying a little bit more for better quality then for just average quality. This relates to what we talked about when dealing with outsourcing of large data warehouses.

Information systems; new research on information systems from university of parderborn summarized. (2012). Investment Weekly New, , 1001.