In-House vs. Outsourced Case Study (Essay Sample)
This paper was a Case Study on the selection between an In-house and an Outsourced IT solution. The paper required a discussion of the factors to be considered in the selection of the In-House and outsourced IT solutions, which were dependent on the firms’ type of website design, search engine optimization, & online marketing, and customer engagement tools, which are different among companies since they are designed to serve different target groups with quite unique needs. The choice between the two, therefore, was made considering factors such as the origin of the component, the vendor or supplier, the actual part, and how to implement or integrate it. The key decision drivers, which represented the elements for consideration on what to trade-off in the component sourcing options (CSOs), according to Petersen et al. (3), were found to include performance, maintenance, reliability, security, quality, time, cost, market and contract, access and control, component usage in the system, and the component history. In the choice of CSOs, one of the considerations is the choice of the vendors and suppliers. Petersen et al. (3), further posits that the CSOs considered while choosing vendors included the costs involved, the level of skills of the human resource, the appropriate infrastructure, and the quality of products and services since vendors had to be chosen carefully to minimize any technical, legal and economic challenges that may arise. In addition, the utilized solutions for decision-making were considered and it involved utilizing various solutions to choose between the in-house components and components off-the-shelf. An instance of a decision to maximize reliability and minimize the delivery time, an optimization model, was given. In this case, simulations involve performing certain stages of logical analysis of the problem at hand and disintegrating the original problem into simpler components that will lead to the desired solution.source..
In-house vs. Outsourced Case Study
Factors to Consider When Selecting In-House Vs. Outsourced IT Solution
Information technology (IT) requirements differ from one business to the next. The difference is because businesses have unique IT requirements designed for specific needs. For example, the type of website design, search engine optimization, and online marketing and the customer engagement tools differ among companies and are designed to serve different target groups with unique needs. Therefore, when choosing between an in-house or an outsourced IT solution, factors to consider include; the origin of the component, the vendor or supplier, the actual part, and how to implement or integrate it. The option taken should make sense in terms of the lead-time, the costs involved and the effort.
Key Decision Drivers
Key decision drivers represent the elements for consideration on what to trade-off in the component sourcing options (CSOs). These drivers include performance, maintenance, reliability, security, quality, time, cost, market and contract, access and control, component usage in the system, and the component history (Petersen et al. 3). Each of these criteria plays a role in maximizing the efficiency of the system. For example, the performance criterion ensures that the system saves time and resources. Maintenance implies a system that can be easily maintained while providing maximum service. Security of the method involves a system that can protect the data and support the team. Therefore, the decision on what to trade-off mainly depends on the level of significance of one component over the other.
Utilized Solutions for Decision-Making
The decision-making process involves utilizing various solutions to choose between the in-house components and components off-the-shelf. The most utilized solutions according to the available literature are the simulation models (Petersen et al. 2). For example, when seeking a decision to maximize reliability and minimize the delivery time, an optimization model may be more appropriate. Simulations involve performing certain stages of logical analysis of the problem at hand, and disintegrating the original problem into simpler components that will lead to the desired solution. For example, in our project study, establishing the solution involved breaking down the project into objectives, scope, assumptions and constraints, risks, and the budget and timeline estimates (“Project Management Principles” 20). Breaking down the project into such smaller parts makes it easier to know the magnitude of the problem, the targets to be met, and the possible risks that may interfere with completion of the project as well as the time needed to meet the goals.
While engaging in the decision-making process, it is essential to understand how choice affects the criteria. When choosing CSOs, one of the considerations is the choice of the vendors and suppliers. The CSOs considered while choos
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