Why, Advantages and Disadvantages.
Why outsource software development - you available team is permanently involve in support and administration of current MIS, but you needs already of new version of the your MIS. There are two possibilities - to hire new programmers or to outsource development. All good programmers are limited quantity and already work some where. If you like to attract someone who can develop top of technology MIS you must bid with others - sometimes this is very expensive and time-consuming. No guarantee that he/she will be the proper programmer for your MIS.
Offshore and Outsourcing Advantages - Offshore-Outsourcing firms are located in comparatively low cost of life counties. We can offer you fixed cost contract. Faster and On-time delivery. We can start immediately. You can see how we develop MIS and our technology. There are other firms which already work with us and you can get their opinion. You can get demos of our work. All technology are our own ownership - no problem with other firms about their use.
Offshore and Outsourcing Disadvantages - The outsourcing staff couldn't be involved in support during critical moment for IT department or in face in face research of requirements of your customers and suppliers. Some communication problems in the beginning of the project during time of equalization of used terms. Apprehension of security of the datatransfers between you and outsourcing firm.

Cost. With outsourcing reduces:
      - Hiring cost.
      - Transaction cost of organizing a new staff in a team.
      - No needs to rent additional workspace and buy additional new software and equipment.
      - No long-term; social security and health payment obligation.
Possible increase in business trip, telephone and Internet expenses.

Quality and On-time delivery In signed contract terms are fixed and every day after the term is punished. This secure you that system will be finished and implement on-time. My advice is some of your permanent staff, who well know how act you current system or expectation about new one, to test new one and make remarks and require from outsourcing firm to reach some standards.