- 24/02/2013
- Posted by: essay
- Category: Free essays
Today, the development of information technologies encourages the wide introduction of new information systems and software capable to protect data and private information from information breaches. What is more the development of new information systems and software normally contributes to the improvement of processing of information and facilitates the use and storage of information. In such a situation, many companies develop their business developing new information systems for other companies. At the same time, some companies attempt to develop their own information systems within their information system department but outsourcing is the most widely-spread business practice in regard to information systems development.
Current system development business strategies
In actuality, it is possible to single out two main options for the development of information systems. First, companies develop their own information systems and maintain them using their IT specialists. For this purpose they need to maintain the IT department and invest into the development of new information systems and their regular updating. Second, companies can outsource the development and maintenance of their information systems (Bloch, Peigneur and Segev, 2000). In such a situation, they need to pay for services and information system provided by supplier but companies do not need to invest into the development of its own information systems. In actuality, outsourcing is the most widely-spread business practice in the contemporary business environment.
CRM benefits and advantages
While developing information systems using the potential of the IT department, companies invest into its own human resources. They stimulate their IT specialists to develop new information systems and, thus, improve their professional level that is beneficial for companies (Lucas and Baroudi, 2002). In such a way, they can improve the effectiveness and productivity of their IT specialists because they grow more experienced and well-qualified. As for outsourcing, this strategy also has its own benefits. First, outsourcing allows saving costs because companies do not need to employ highly qualified IT professionals who could work on information systems entirely. In addition, outsourcing leads to the involvement of well-qualified specialists only in the development of information systems that meet needs and wants of specific organizations.
Challenges
On the other hand, outsourcing can raise the problem of dependence of companies on their suppliers. In addition, outsourcing implies that companies pay to other companies, instead of investing in their own human resources. At the same time, the development of their own IT departments will need substantial financial and human resources (Andrew, 2003). Moreover, information systems have to be updated regularly that increase costs of their maintenance.
Key trends and future development
Today, the development of information systems is very important whereas in the future their role will increase even more because the number of threats to information stored is likely to increase. Therefore, it is possible to presuppose that in the future companies will need new and better information systems and they are likely to outsource information systems to insure their high reliability and effectiveness and to save costs.
Conclusion
Thus, the development of information systems is essential for the development of modern business. However, information systems need substantial financial and human resources. In such a situation many companies prefer to outsource information systems.
References:
Andrew, S. (2003). Computer Networks. (4th Ed), Prentice Hall.
Bloch, M., Peigneur Y. and Segev A. (2000). “Leveraging Electronic Commerce for Competitive Advantage: a Business Value Framework.” The Ninth International Conference on EDI-IOS, Bled, Slovenia.
Lucas, H. and Baroudi, J. (2002). “The role of Information Technology in Organization Design.” Journal of Management Information Systems, vol. 10(4), 45-52.
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