• Software development can be a considerable part of a company’s software budget. Software may be developed in-house or outsourced. Outsourced development may be on shore or offshore. There have been heated debates on the best strategy of developing software. Take a strategic position on this debate. Create an argument for which method (in-house, onshore, and offshore software development) is the bestin terms of cost, security, reliability, and intellectual property protection. Support your response.

Offshore IT outsourcing is hot, and for good reason. The Meta Group reports that 80 percent of companies plan to outsource some IT function by 2003, and Dean Davidson, Meta’s Vice President of Service Management Strategies, says, “Outsourcing is a competitive necessity in the era of e-business.”

A recent Aberdeen Group study reports that large consulting and systems integration service suppliers in the United States and Europe are increasingly turning to offshore development and partnerships to lower delivery costs and gain access to diverse IT skill sets. Meanwhile, a growing number of midtier firms and technology and IT service suppliers now partner with offshore developers.

Lowered labor costs
The most obvious advantage of offshore outsourcing is the reduced cost of IT labor, although estimates of the net savings vary widely.

Secure Infrastructure
Generally any well established Indian IT outsourcing company has secure infrastructure in place. They understand customers’ risk factors and provide Intellectual property security as well. Some companies also avail the certification from ISO for verifying there security level. Due these precautions client get their projects developed and deployed securely, moreover they save substantial cost which require in establishing infrastructure onsite.

Most IT services companies in India have a successfully tested methodology and have in-built quality standards for their development processes. For example, 22 out of the 37 SEI CMM level 5 certified software companies are in India. In addition, 140 ISO 9001 certified software development companies also exist in India.

Reference http://www.tatvasoft.com/outsourcing/software-outsourcing.html • IT governance is concerned with organizational investments in IT and to ensure that the IT strategy delivers full value. The avoidance or prevention of IT strategic failures is the biggest part of IT governance. Describe at least two issues that drive IT governance.

There is a general lack of accountability and not enough shared ownership and clarity of responsibilities for IT services and projects. The communication between customers (IT users) and providers has to improve and be based on joint accountability for IT initiatives.

There is a potentially widening gap between what IT departments think the business requires and what the business thinks the IT department is able to deliver.

http://www.isaca.org/Certification/CGEIT-Certified-in-the-Governance-of-Enterprise-IT/Prepare-for-the-Exam/Study-Materials/Documents/Developing-a-Successful-Governance-Strategy.pdf