17 essentials of business information systems chapter

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Unformatted text preview: and develop information systems • Completed more rapidly than systems developed with conventional tools • Organizational risks 11.17 Essentials of Business Information Systems Chapter 11 Building Information Systems Alternative Systems-Building Approaches Purchasing Solutions: Application Software Packages Purchasing and Outsourcing and • Request for Proposal (RFP) • Application software packages • Generalized systems for universal functions with standard processes • Customization • Outsourcing • Application service providers (ASPs) • Offshore outsourcing 11.18 Essentials of Business Information Systems Chapter 11 Building Information Systems Alternative Systems-Building Approaches Total Cost of Offshore Outsourcing If a firm spends $10 million on offshore outsourcing contracts, that company will actually spend 15.2 percent in extra costs even under the best-case scenario. In the worst-case scenario, where there is a dramatic drop in productivity along with exceptionally high transition and layoff costs, a firm can expect to pay up to 57 percent in extra costs on top of the $10 million outlay for an offshore contract. Figure 11-5 11.19 Essentials of Business Information Systems Chapter 11 Building Information Systems Alternative Systems-Building Approaches Rapid Application Development for E-Business • Agility and scalability • Rapid application development (RAD) • Creating work...
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