There has been an ongoing thread in the gantthead business intelligence discussion forum about outsourcing a business intelligence solution, and the thread has focused more on companies that provide sourcing services for business intelligence rather than the right sourcing strategy.
It is very important to understand that outsourced business intelligence has many different connotations and it is critical to understand your requirements for sourcing before choosing a strategy.
Every company--whether it is large or small--must choose how it sources development and deployment of its business intelligence solutions. The traditional model which is still the predominant one today is in-house development with in-house hosting. While the in-house development can be augmented by external consultants or contractors, the entire development process is managed in-house. This model still is the most popular because the company receiving the solution controls the entire effort and it is fraught with the least amount of risk.
Unfortunately, the in-house development effort may pose challenges due to the high cost of projects and the potential lack of in-house competency to do the project. As options for sourcing have evolved over the last few years, two models have emerged to provide companies, both large and small, options on how to source and source their