In-house Network design vs. third party network design - Research Paper Example

In-house Network design vs. third party network design Introduction: There are two types of network designers often available for a client. Some companies prefer having in house departments mandate with the design and management of their networks while others prefer to solicit the services of third party designers most of who operate as consultancy firms. Each of the method has diverse advantages and disadvantages; the choice of a method thus relies on the requirements of the client and their budgetary allocations. The case alongside presents a travel agency with such a precarious position in which it seeks to choose between having an in-house department and soliciting the services from a third party designer. The discussion below analyses the strengths and weaknesses of each method before concluding with an effective and more cost effective method for the company (Doyle, 2001). In house information technology departments in a company are often convenient. Depending on the amount of capital, the management allocates the department, the company rests assured of effective and spontaneous consultation services from the department. The department becomes an essential part of the company often positioned at the top management level thus aiding the management in making vital decisions concerning the information management. Additionally, the method promises continuous and effective to the company. Firstly, since the department is part of the organization the personnel in the department have adequate experience with the company and have absolute access to its every department. This implies that they offer faster services owing to the unlimited access of the organization unlike a third party that will often seek permission to access certain aspects of the organization thereby resulting in inefficiencies and communication flaws. The inception of the department as part of the organization further instils a spirit of patriotism in the employees. The freedom of interaction among the personnel of the department and those of other departments creates a seamless environment without resentment, as is the case with third party designers. The in-house department will integrate seamlessly with the other departments thereby creating a holistic organization with similar management structures. The patriotism within the members of the department will compel them to safeguard the interest of the organization thus availing their knowledge and skills for use in other departments should any need arise. However, this may rise issues of misuse since the management of the company may use some of such employees especially when they are not engaged in their professional work to run other tasks irrelevant to their professional. Depending on the nature of the information systems requirement in an organization, in house departments are often more cost effective. This requires large organizations that need constant management of the information system. The departments may however prove expensive for smaller companies that may not have adequate finances to afford the personnel and the equipment. Information management employs automated programs that can easily operate automatically without the personnel. This implies that should a department employ more personnel, they will prove more costly to maintain yet not directly productive. Most organization have often redeployed such personnel to other departments a feature that kill careers thus inhibiting personal growth. Additionally, managing the in-house departments thus becomes unnecessarily expensive for the company. Consultancy firms on the other hand are private companies that specialize in the creation and management of the information systems. A company in need of the services thus consults them with specific needs for which they charge an adequate amount and deliver the particular service before again cutting links with the company. Third party companies are effective since most all of their employees are experts with professional skills in the specific areas of their operations. Once contracted, they employ high quality standards since they use such contracts as opportunities to market their companies thereby get referrals from their past clients. However, as business organizations they exist primarily to make profits and may thus charge exorbitantly for some of their services a feature that makes an in house department more profitable. Additionally, the third party designers have a pool of resources and experience in the industry. They therefore have contacts and connections with some of the best service providers and equipment manufactures. With their experience and expertise, an organization stands to benefit high quality information systems. However, their service is reliant on several in-house factors most of which may interfere with the quality of the network. Owing to the fact that they lack adequate information on the operations of the company, they rely on the internal staff of the organization to offer such. The evident lack of intimacy between the staff of the external company and their clients inhibits free interactions thus limiting the quality of information they obtain about the company and its information needs. The quality of their final product may not therefore serve the company as effective as one developed by an in-house department. Additionally, since it is a commercial organization it exists to maximize profitability. This implies that such a company may secure numerous similar tenders from different organization at the same time thereby affecting the quality of work they render some of their clients. Such circumstances result in serious inconveniences to the client as the company begins sending different staff to the facility most of who may not have adequate information on the history of the information system thus result in more damages. The construction and management of an information system requires adequate expertise coupled with commitment to ensure that a client obtains a secure and convenient network capable of bearing its entire information requirement (Burkholder, 2006). The travel agency presented in the case is a large company with five regional call-processing centers. This implies that the company’s operations rely on the effectiveness of the call centers. The company currently needs to restructure its information systems and revamp the security and efficiency of the entire information system thereby consolidates the database of the entire five call processing centers. To implement the changes, the company has set aside one and a half million dollars that is quite a substantial amount of money. Additionally, the project will run for a duration of three years, which is quite a long time. Given the nature of the company and its service needs, it is more economical for the company to set up an in-house information technology department. The company has set aside a substantial amount of money capable of creating an effective department thus staffing and furnishing such a department with adequate facilities to ensure that it delivers high quality products. Being an in house department, the management of the company will have an absolute control over the department thereby directing both its institution and subsequent operations. The company will require three hundred thousand dollars to hire three information technology experts to oversee the operations of the department. These will be permanent employees of the department mandated with the design, construction and management of the network (McIvor, 2005). During the replacement of the entire network as the case details, the department will hire a few more employees on a contract basis depending on their demand at a cost of not more than an additional one hundred thousand dollars. After the creation of the department, it takes over the management of the project that begins with the creation of a budget that will include the purchase of new computers, routers, fiber optic cables and servers and other information processing facilities such as telephones, printers and fax machines at a cost of four hundred thousand dollars. The department will use the remaining seven hundred thousand dollars in maintaining and managing the system for the next three years. This may include hiring additional employees on contract basis in case the system encounters another major breakdown and for purchasing other damaged facilities in the three-year period before the company reconsiders the future of the department thus allocating it more funds. In retrospect, creating an in-house department to construct and maintain the department will be more cost effectively. The department will assure the company of the reliability of its services. the head of the department will report to the chief executive officer on a daily basis this implying that he or she will have direct access to the operations of the department and monitor its progress thus suggesting changes on the performance and maintenance progress of the network to ensure that the company possess an effective and reliable information system. References Burkholder, N. C. (2006). Outsourcing: The definitive view, applications and implications. Hoboken, N.J: Wiley. Doyle, S. (2001). Information systems for you. Cheltenham: Stanley Thornes. McIvor, R. (2005). The outsourcing process: Strategies for evaluation and management. Cambridge: Cambridge University Press. Read More