Document Type


Publication Date

Spring 2018


Charles Weber

Course Title

Strategic Management of Technology

Course Number

ETM 526


Computer software -- Development, Software engineering, Contracting out -- Management


Over the last several years, software has become a vital component of almost every business. Success increasingly depends on using software as a competitive weapon [1]. In today’s software industry, many organizations are realizing that outsourcing is becoming an imperative, strategic step to growing their business, and as a way to gain competitive advantage over its competitors.

The focus of this article, will be a literature review of current literature on outsourcing, and its strategies in the Software Engineering domain. As a software engineer at Intel, I have seen an increased need for outsourcing within our business group, and the entire software domain as a whole. This has become a necessity, in order to stay competitive, in an increasingly competitive, and challenging environment. Globalization, and the growth of communication technologies, has allowed the

Globalization, and the growth of communication technologies, has allowed the world to become a place where companies are not limited to work in local areas, they can look for expertise throughout the world. Unlike physical goods, software components, if required, can be transferred to the place where required expertise is available, and the cost is also less.

To stay competitive in this ever-changing environment, managers must be able to know when the right time to outsource is, and when is not a good time to pursue this strategy. Additionally, they need to be able to identify what business functions to outsource, and what not to. Outsourcing, can be an immense source of competitive advantage for a company, if leveraged correctly, accordingly, it can be a weakness, if not deployed correctly.


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