Suppose, as a Chief Information Officer (CIO), you were asked to provide the organization with time-entry system for the employees. Examine the options to insource or outsource the system to be developed. Determine whether you would insource or outsource the system to be developed, and predict the implications of your decision with the organization’s total cost of ownership.
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The best option is to outsource a time-entry system based on the following merits:
1) The outsourced time-entry system will be owned and serviced by the vendor at agreed timelines.This minimises costs of the organization seeking services from elsewhere if the system had been built internally.
2)The vendor will maintain the system for the period agreed. In the event of breakdown, the vendor will replace the system without any costs arising to the organization.If sourced internally the organization would be forced to look for specialist for repair or build another one meaning more costs are involved.
3)The organization will only be paying the monthly agreed amounts to the vendor. This gives an organization some known budget other than costs which can be incurred by unexpected repairs or constructions of another time-entry system.
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Suppose an organization that has entered into an SLA with another organization goes out of business. Determine whether the SLA still applies or becomes invalid. Propose what the organization should do to maintain the service delivery.
Well, if the organization ceases to operate then the SLA becomes invalid.However, it is prudent to deal with several vendors/suppliers at any one time to mitigate risk of continous service.Therefore to maintain effecient service delivery the organization needs to use several suppliers or have in place contacts of the suppliers of similar systems ready to perform tasks once called upon.
Aug 2nd, 2015
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