Outsourcing is neither bad nor good. It is a strategic decision based on certain parameters taken by an organization to offload some projects or part of a project to a third party. Offloading certainly comes with many boons and many banes. Offloading should be managed very carefully as the project delivery ownership still remains with you even if you are offloading complete project. Insertion of seriousness in the outsourced vendor regarding the project, requirements and its timelines is very important. There are many parts of a project that can be outsourced and as said above, the decision is purely management’s to decide what part of project is to be outsourced and to be awarded to whom.
Definitely in offloading the vendor-customer chain becomes longer depending on number of components of a project outsourced and the number of vendors involved. Even for a single component of a project there can be more than one vendor. And for a number of components of a project there can be a single vendor.
Offloading or not will depend on many factors that can be listed below as:
1. High number of projects
2. Shortage of skilled manpower
3. Shortage of right skilled people
4. High engagement of required persons
5. Lack of resources (in case of testing tools or otherwise)