1. OUTSOURCING AND CROWDSOURCING AIMS 2710 R. Nakatsu

2. Outsourcing Forms Of Systems Development Outsourcing 1. Purchase existing application software package. 2. Outsource development of a system for which no application software package exists. Offshore outsourcing of IT development is predicted to grow in size and importance in the coming years. is hiring an outside organization to develop the system.

3. Questions for Discussion: What are the advantages and disadvantages of outsourcing (compared to in-house development)? What does Apple outsource? Why? When do we use outsourcing, and what types of IT projects are most suitable to outsourcing?

4. Crowdsourcing Definition: Crowdsourcing is a distributed problem-solving and production model. Problems are broadcast to an unknown group of solvers in the form of an open call for solutions. Users—also known as the crowd—typically form into online communities, and the crowd submits solutions. The crowd can also sort through the solutions, finding the best ones.

5. Questions for Discussion: What are some examples of crowdsourcing? What are the benefits of crowdsourcing? Can you think of some problems with crowdsourcing?