Advantages and Disadvantages of Making and Buying - Assignment Example

Advantages And Disadvantages Of Making And BuyingBoth the outside resources and internal resources are very important for the development of a new system in an organization particularly when the combination that takes place is synergistic or turns out to be great. Internal resources include IT department analysts as well as other expert individuals, financial plan, and time line, hardware and software. On the other hand, external or exterior resources include information transfer to the internal IT department, need of the expertise or corporate mandate and springiness in terms of choice of functionality and timely provision (Stair & Reynolds, 2013).

The paper outlines both the advantages and disadvantages of the buy and the make approach.Advantages of using internal resources (making approach)i) Complete controlThe use of internal resource in developing the new system gives the organization total control of the system. They are able to carry out internal factor analysis by surveying, classifying, exploring and appraising without external interference (Limaye, 2009).ii) Ownership of the software codeThe organization has full ownership of the software code and can be able to smoothly identify and carry out major updates while doing inner testing without written permission from an external entity (Doyle, 2008).iii) Tailored to unique needs of the businessThe organization can make a system that is unique to their business needs because in house production enables them to make core features thus ensuring longevity as well as running of the software (Limaye, 2009). iv) In house production ensures easy identification of problems associated with the system and timely solutions.

Disadvantages of using internal resources (making approach)i) Development timeInternal development of software requires a lot of time from human resources of the organization. It is time consuming to develop complex solutions for multiple users (Doyle, 2008).ii) Training and supportIt requires that internal software developers be given specialized training services as well as support for them to be able to effectively work with the new system. The organization may not have resources and time to offer such training and support (Stair & Reynolds, 2013).iii) Competitive functionalityInternally made software face stiff competition from well established software vendors because they create software applications with an ease-of-use and a depth of functionality that is hard to match (Limaye, 2009).iv) TurnoverIn case the software developer leaves the organization, it may be hard for the organization to support the application (Stair & Reynolds, 2013).v) Staying currentThe organization may lack resources and time required to create a dedicated software development team necessary in updating the product to be compatible with the latest technology thereby making the system outdated (Doyle, 2008).

Advantages of using external resources (buying approach)i) The company has a wide range of ready-made solutions to choose from the one that suits their needs (Stair & Reynolds, 2013). ii) Effective systemsExternal vendors create software applications with an ease-of-use and a depth of functionality because they spend thousands hours of research and development (Limaye, 2009).iii) External vendors are able to provide the organization with specialized training as well as support because they have a big team of dedicated software developers.iv) Flexibility and adaptabilityExternal software vendors are able to develop software applications that are flexible to meet changes as well as adapting quickly to new technology.v) They can continuously enhance functionality through the input of the customerDisadvantages of using external resources (buying approach)i) Vendor retains complete control and rights to the code (Stair & Reynolds, 2013).ii) The product functionality is solely determined by the vendor (Stair & Reynolds, 2013).iii) The organization fully relies on the technical support of the vendor to resolve issues (Doyle, 2008).

This may be very inconveniencing especially when urgent attention is required.referencesStair, R., & Reynolds, G. (2013). Fundamentals of Information Systems. New York: Cengage Learning. Limaye, M. G. (2009). Software engineering: Principles and practice. New Delhi: Tata McGraw-Hill Education.Doyle, S. (2008). Essential ICT for AQA: As Level. Buckinghamshire, UK: Folens Ltd.