Activity 3.6 Research Analysis Paper

Applications Software: Should It Be Outsourced?

Joseph T. Fusaro

Embry-Riddle Aeronautical University

MGMT 221

08 Dec 2014

Application Software: Should It Be Outsourced?

In the beginning of the smartphone era companies demonstrated their dominance by whoever had the best software applications or apps possible. IT teams across the world were thinking of new and exciting ways to establish ground breaking new ways to sell their products. This new market would soon give rise to software development companies in meager parts of the world that would take advantage of these companies lacking IT ingenuity. The birth of outsourcing application software had begun.

The issue with outsourcing software development is can you get the same quality application product from a company that gains control of your asset?

Some companies seem to think it’s worth the gamble. Bryan Kirschner of company Apigee states “We’ve found that those who are succeeding in app deployment have a strikingly different approach to their IT departments. They recognize the strategic value of leveraging external expertise to maximize their agility and adaptability.” (Murphy .M, 2014, p. 1). It can be argued that companies that use outsourcing will ultimately save money and give time back to their IT teams to work on other improvements the company demands. These demands will give the company the edge they need on the market.

On the other hand there seems to be a rise in companies internalizing their application development back into the core of the company. Car Company Tesla’s CIO Jay Vijayan stated “Tesla owns and manages every stage of its core business. Because of that we had to do everything internally to keep things under control - and for agility and flexibility that we weren't getting with other projects on the market.” (Murphy .M, 2014, p. 1). Tesla is a firm example that shows exactly how important it is to internalize a company’s app process development. The new car company has shown...