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Mgmt 379 Week 5 New Systems Case Study

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Mgmt 379 Week 5 New Systems Case Study
MGMT 379 – November 21, 2013
Week 5 – New Systems

When looking into a new system there are many areas that need to be directly addressed before choosing if the system can be developed in-house or if outsourcing is best. First off companies need to decide what all they need the new system to do and if that type of system is already on the market. With all the technology resources available to companies and individuals there is a good chance that the needed system or a comparable one is already on the market.
However there are always improvements and extras that can be added to any system to make it unique and personal to the company’s goals. This is where companies that are able to in-source or have “in-house IT specialists within” have the upper hand. Having the ability
…show more content…
Outsourcing has many benefits, but just as many downfalls too. One the available benefits is the fact that could be many comparable systems on the market that meets the needs of the company. Another positive would be that others have are to use the system and that the issues which could arise already have a solution. Though if an issue would arise, the third-party company would have support or maintenance team available.
And herein lies where the downfalls of outsourcing could begin. To start with for a business would have to make sure that the “cost of the system and the level of service” they need from the third-party company would allow the business to still be profitable. Also, some outsourcers require companies to sign a contract for “a specific length of time”. If the company is in a business in which the needs of systems fluctuate greatly it could hamper their growth. Another area that would need to be addressed would be the time it would take for maintenance team to come and fix an unknown issue with the

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