In-House Development

14 Feb

As I have already discussed the advantages of outsourcing, I will now address why an organisation might opt to develop their information systems in-house instead.

Advantages:

  • Best fit with the company requirements
  • Tigher integration
  • Have control over software improvement
  • Have all of the required features
  • Main core competencies and maintain level of quality service
  • Make a distinction with other companies

However, according to a paper published by “sports systems” there are many hidden costs associated with in-house development.

  1. Design & Implementation Time: It can be very time-consuming trying to articulate exactly what the department needs. Also, the development of IS may be diverted as the core business objectives will be the priority instead.
  2. Available Expertise: Your department must have all the relevant expertise to develop the specific application.
  3. Opportunity costs: An organisation must address the issue that while their employees are working on IS development they cannot work on other projects benefiting the business
  4. Maintenance and Support: After the system is installed it may be difficult to get immediate help and support from the employees who developed the system as they are now back working on core business functions, trying to catch-up.
  5. Updates and Upgrades: Trying to keep up with competitors can be difficult. If after developing the system, the organisation realises it needs a better, faster and more efficient system it must start the process all over again

Here is a debate about whether it is better to develop systems in-house or purchase off-the-shelf software: http://www.youtube.com/watch?v=-EyfonrtTkc

It’s quite long but very interesting. Enjoy!

 

5 Responses to “In-House Development”

  1. sad112759089 February 15, 2013 at 7:17 pm #

    Is it better to develop systems in-house or purchase off-the-shelf software?

  2. sad111510567 February 19, 2013 at 2:28 pm #

    I think it is up to the company and what it is they do. I think developing information systems in-house is preferable when the system in question is a major component of the company and it’s objectives.

  3. sad111302881 March 8, 2013 at 5:36 pm #

    Great blog, I like the way you consider both the advantages and disadvantages to in-house development, your opinions are very balanced, unbiased and well expressed🙂

  4. sad109566511 March 8, 2013 at 7:57 pm #

    Its great the way you discuss both advantages and disadvantages,there’s always a good side and a bad side to everything and they are explained really well in your blog🙂

    • sad111510567 March 9, 2013 at 1:06 pm #

      Thanks very much. I think its important to give both sides in order to develop a thorough understanding of the topic. Glad you like it!

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