Outsourcing and Procurement (lec 15)

These flashcards cover key terms and concepts related to outsourcing and procurement from the lecture notes.

Outsourcing

The process of hiring another organization (vendor) to provide a service or application.

Application Service Provider (ASP)

A vendor that maintains the system at its location and provides access to the application through its website.

Service Level Agreement (SLA)

A contract that defines the quality and availability of services provided by the vendor to the organization.

Request for Proposal (RFP)

A document issued by a purchaser to solicit proposals from vendors for a specific project or service.

Vendor Management

The discipline of managing, administering, and guiding product and service vendors to optimize IT or business outcomes.

Onshore

Outsourcing services to a vendor within the same country.

Nearshore

Outsourcing services to a vendor in a neighboring country or the same time zone.

Offshore

Outsourcing services to a vendor in a distant country.

Risk of Outsourcing

Challenges such as lack of ownership, consistent communication, and not being a priority for the vendor.

Request for Information (RFI)

A formal request to gather information from vendors about their capabilities before making a decision.

Request for Quotation (RFQ)

A document requesting a price quote from vendors for a specified product or service.