In-House vs. Outsourced IT Solution Case Study

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Updated: Apr 5th, 2024

The success of a software system depends primarily on the source and supplier of its components. Services such as baking, communication, transport, and health depend on information systems; hence, an intensive process needs to be taken to ensure a goal-specific system. Whether to internally develop strategies or source them from an external source depends on the system’s cost, performance, and reliability. Component sourcing options (CSOs) give an analytical approach based on performance on the ideal choice at a given time (Petersen et al., 2017). The components are in-house, open source, outsourced, off the shelf, or obtained. The sourcing options are determined through optimization models that help organizations gauge the software components’ cost and reliability. This paper discusses the place of prioritization, weighing of alternatives, and Pugh Analysis in selecting component sourcing options.

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The in-house system varies significantly from the outsourced components, which include details off the shelf (COTS), open-source system (OSS), and obtained system (OS). Project metrics prefer outsourced components to in-house due to time factors. The open-source system, which is predominantly an outsourced component, takes little time to execute software-related tasks compared to the in-house system. Components off the shelf guarantee better community support in a system than inbuilt components (Petersen et al., 2017). When faced with choosing either in-house or outsourced components of a software-intensive system, time, performance, and quality are critical. Concerning performance, outsourced components are more easily modifiable than inbuilt components. In-house parts take advantage of house security and quality. Overall, outsourced software-intensive system components provide better performance outcomes than in-house components.

The components of the source, the vendors, and the origin of the software-intensive system are the key drivers of the outcomes of a component sourcing option. Suppliers to the software components impact the cost of a decision and the quality of the selected components. Software-intensive systems are faced with technical, legal, and business shortcomings. Appropriate vendor brings about component integration that reduces the chances of technical failure, which affects quality and results in legal issues in software (Petersen et al., 2017). Software developers provide various support systems to users. Suppliers’ selection impacts the level of collaboration between the developers and the customers, impacting communication. For instance, an open-source system promotes clients’ and developers’ interactive use more than the inbuilt software components.

After choosing a component sourcing option, decision initiation and decision-making process follow. The managers carefully analyze the options and settle on the less costly, time-effective, and easily maintainable software component. Reliability of the software components, performance when assigned a specific task, compatibility, and security interns of user information are the tools used to decide on the best components. A mathematical approach, which includes the odd ratio between a. Criterion and a decision option, is used to determine the likeliness of a software component to be optimum (Petersen et al., 2017). Cost is also an important criterion used by managers to determine the decision on a particular component.

In-house, component-the-shelf, open-source, and outsourced components are the CSOs choosing a software-intensive system. The in-house Option is mostly adopted whenever software development occurs inside the company (Petersen et al., 2017). COTS is preferred when the buyer is not provided with the software’s source code. Additionally, the Open-source system is prebuilt as a component of the shelf. However, it is considered an option whenever an interactive interface is required.

In conclusion, software choice determines the source, component, and origin factors. The variety of Component sourcing options gives a company the room to choose the best-suited software depending on the development required. As stated in the ORION case survey, the success of the software option depends on the correction and decision options. To promote reliability in software systems, expert analysis of the variables is essential.

Reference

Petersen, K., Badampudi, D., Shah, S. M. A., Wnuk, K., Gorschek, T., Papatheocharous, E., Axelsson, J. Sentilles, S. Crnkovic, I., & Cicchetti, A. (2017). . IEEE Transactions on Software Engineering, 44(3), 237-261. Web.

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IvyPanda. 2024. "In-House vs. Outsourced IT Solution." April 5, 2024. https://ivypanda.com/essays/in-house-vs-outsourced-it-solution/.

1. IvyPanda. "In-House vs. Outsourced IT Solution." April 5, 2024. https://ivypanda.com/essays/in-house-vs-outsourced-it-solution/.


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IvyPanda. "In-House vs. Outsourced IT Solution." April 5, 2024. https://ivypanda.com/essays/in-house-vs-outsourced-it-solution/.

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