Case study:
A mobile operator selling iphones is asked by Apple Inc. to apply its business model of the company to develop local mobile applications for the local Appstore (that is, to ask local developers to do it individually). In this context, the mobile operator organised a conference to which it invited all ICT students and professionals in the country. The development platform and other tools were presented to the attendees. Latest market surveys carried out by the mobile operator were also shared with the people. As a whole the event was considered a success and all the attendees went back home very excited about new mobile applications which they would develop and sell themselves on the local appstore. A local minister who was also present congratulated the organisers of the event for their effort in “democratising the economy”.
Question 1: What type of outsourcing is being practiced in the above case?
Question 2: Explain FOUR benefits of this type of outsourcing as opposed to the mobile operator developing the mobile applications itself?
Question 3: Explain FOUR possible pitfalls of this type of outsourcing?
Question 4: Assess the risk for TWO of the possible pitfalls.
Question 5: What mitigating actions could be taken for the above TWO pitfalls.