Question

In: Computer Science

For each of the three organizations below, Recommend whether the organization should build or buy/outsource the...

For each of the three organizations below,

  • Recommend whether the organization should build or buy/outsource the system in question. Explain your answer.
  • What additional information would be useful in making your recommendation?

Organizations:

  1. A medium-sized company that sells roofing materials to contractors needs a system that will allow customers to check product inventory through a website.
  2. A large (Fortune 500) retailer with a large, well-skilled IT department needs a system that will track the purchasing habits of its frequent customers.
  3. A large (Fortune 500) defense contractor needs a system that will track payments to vendors.

Solutions

Expert Solution

Solution 1: In this case, the organization is a medium-sized organization and they can hardly afford to outsource software that is crucial to their business operations and hence they should develop the system on their own.

Solution 2: Although it is a Fortune - 500 company, since it has a well-skilled IT department then it should go on to develop the system on their own and it is because this software system is actually critical for the smooth running of the critical operations of the organization and secondly it would also help the organization to develop a skilled workforce within the organization.

Solution 3: Since it is a Fortune - 500 organization and they do not have any prior experience of developing the software systems on their own, therefore they should outsource the software system from a third party vendor. It is because they do not have enough skilled workforce and the time to design and develop on its own.

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