Tegan elects - Essay Example

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Case Study #5 Regardless of the choice that was made, Tegan needed to make a decision. Of the decisions presented, this one made the most sense. The accounts payable (A/P) in any business is very important if people want to be paid for work. Tegan could have done the work in house but it would have cost them more in the long run…
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Download file to see previous pages The most important part of determining whether to outsource or not was cost. But in this case, a better solution points to Hrad because Tegan has worked with them in the past. There are many tradeoffs that would be involved if Tegan elects to have the requirements analysis done by one of the first that was involved in bidding. They would have to start over with a new company and this would mean they would probably pay more. Also, because they did not know the newer company, the bidders would probably inflate their original bids to cover what they did not know about Tegan. Tegan needs the project completed by December and it would take more time for a new company to come up with the information. The beginning of Hrad’s work with Tegan was in 2004 when they were looking for new partners and new business. Tegan was impressed with Hrad and decided to give them a small project that both the companies could use. For Tegan it was a way to understand how Hrad worked and for Hrad it was a way to get their foot in the door with this company. This project also allowed them to build a rapport with the sponsor/coach (Upton Staats “Hrad” 2). Hrad was able to give Tegan what they needed on this pilot project and they were able to move forward and do more work with Tegan. The good news was that the project was able to pass all of the “customer acceptance tests” (Upton Staats “Hrad” 2) and the functionality was excellent. Unfortunately the bad news was that the performance speed was a problem. They fixed this problem by having the Hrad technicians work with a Tegan architect so they could better learn the process. Hrad also sent to Tegan’s offices one architect who could help them fix the problem; the performance problems were resolved. One of the challenges for the next part in the development was that the Tegan architect who had worked so closely with Hrad and who had been a bridge between the two companies, decided to leave Tegan and this meant that information that was understood between two companies was lost. Several projects were given to Tegan after the first one and they were finally given the project to re-vamp the A/P system. The program was to be finished by December of 2008 (Upton Staats “Hrad” 2) and Hrad received a fixed price contract. However, Hrad would have to bid on the project as all the other bidders. Tegan awarded the contract to Hrad after they presented a ?900,000 bid and Hrad began work in December of 2007. Hrad worked with Dunnock and with Hrad to develop the project. There were other problems that happened along the way as they developed this project and many challenges began to unravel the project. As an example, after two and a half months, Hrad insisted that Tegan had more than one person review LLDs because there were too many problems with only one person reading them. There was good communication between the two companies and they seemed to iron out the problems as they came about during the development. Unfortunately as they continued into the project, Hrad found that it would cost another ?400,000 to do the work they needed to do to meet the December deadline; Tegan’s CIO, Winston Smith was not happy with this development because Tegan was on a fixed price contract. At this juncture, there had to be negotiations between the two companies for the extra cost. Once the project commenced, Hrad Technika had ...Download file to see next pagesRead More
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