First and foremost, if I were invited by the Dean of the Institute of Computing to attend a seminar – workshop on information systems planning together with some of the faculty of the Institute of Computing I would consider it as a big privilege and I would do my best to give my evaluation regarding the current information system of the school which was once outsourced and now shifted to in-house.
(Before I start I would like to define the terms involved in this post so that the ones who do not know may also know)
IN-SOURCE OR IN-SOURCING
From what I’ve posted in my personal blog in-house or in-sourcing refers to the business practice of using a company’s or organization’s own personnel, staff, funds and resources to produce a commodity or service for the company or the organization. This is in contrast to the production being outsourced or contracted out to another company. Organizations involved in production usually opt for in-sourcing in order to cut down the cost of labor and taxes because they would not to hire workers or outside service providers. This trend has increased since the year two thousand six (2006). Some organizations that shift or employ in-source are usually those who have been to outsource and was not satisfied with it. Some also think that through in-source they can have better people support and better control over the work outsourced by in-sourcing their work rather than outsourcing it.
OUTSOURCE OR OUTSOURCING
Outsourcing on the other hand is the agreement between two companies in which one company would provide its services to the other company that has usually provided in-house. Outsourcing has become a trend that is common in Information Technology and other industries wherein in some cases the entire information management of a company is outsourced. Organizations that choose outsourcing think that they could acquire a lot of advantages from it. Some organizations choose outsourcing because they get high reliability, less costs and high-quality services.
(Going on to my stand, by the way I choose In-sourcing for the university.)
Looking at the present situation of the information system of the school which has been shifted from outsource to in-source it would imply that the school was not contented of the outsourced system or the outsourced information system did not meet the needs of the school or maybe the outsourced information system was too expensive to maintain. Anyway, after reflecting about the current issue and after the sessions and sharing we had during our previous meetings in Management Information System 1 subject, I will take the position of in-sourcing. I have posted something about in-sourcing and outsourcing in my personal blog and I remember writing there that the decision of school to shift to in-sourced information system was not a good decision because they decided to shift abruptly. However, this time I would take my stand in in-sourcing the information system of the University of Southeastern Philippines. Why? Because this time we have time to evaluate the current information system of the university and since the current trend of the school is in-source. My decision to choose the side of in-sourcing is not solely because the current trend of the university but because this is a time to rethink. What if this is the first time that the school would acquire an information system, would it be in-sourced or outsourced?
I choose the side of in-sourcing considering the current situation of the school plus it gives a lot advantages like confidentiality of data, less cost, etc. However, I would like to imply that information systems planning takes time and I mean a long time to conjure something complex like an information system considering that there are steps or procedures that needs to be taken into account to be able to come up with an effective information system.
Why in-source? Let us first take into account the current situation of the university (University of Southeastern Philippines). The university lacks the budget to maintain funding an outsourced information system which was the trend of the university before. The university also has in-house staff, capable in-house staff that can be tapped to plan and create the information system of the school. Plus they already know the school’s system which makes them more adept. In-source or outsource has advantages and disadvantages and it matters on the situation of the organization or the company.
ADVANTAGES OF INSOURCING
I have identified advantages of in-sourcing, some of it came from me and some were searched through the internet.
Lessen Cost
I think that one of the big reasons why the university shifted to in-source is to be able to lessen the cost. Lessen the cost of hiring new personnel to administer the new information system. If the information system is in-sourced the people that would administer the information system are those who made the system. Plus the university would need to hire people who will train the personnel who will be in touch with the information system or the ones who will be using the information system because the staff that will create the system is already acquainted with it and he/she can also be utilized to train the other personnel without involving a big deal of money. Compared to outsourcing an information system you will need to hire a resource person who will train your personnel if ever the information system that you will be outsourcing is new to them, meaning they are not yet acquainted with the system. If it was in the case of a company or organization that is involved in producing certain products, in-sourcing will be a great advantage because these kind of business needs a big workforce and if they have the workforce they wouldn’t need to hire laborers from other companies and the like.
Better People Support and Control
In-house staff could train the personnel to be acquainted with the information system so there would be no need to hire a resource person who will be training the personnel in the university. On the time that the system will be implemented and deployed there will be times that the personnel using the information system will encounter problems that have not been encountered before. In this case in-house staff can quickly look into the information system to find out what is wrong and can also possibly fix it pronto. By this there will less time that the information system will be in idle state if ever it encounters problems compared to relying on the support from outsource companies which may not have a twenty-four hour available support for their information system if it encounters problems. Again this could also lessen cost of hiring someone who will check and maintain the functionality of the system and lessen the cost of maintenance. Control is one of the advantages of in-sourcing an information system because the ones who created the system will know how fix any problem that will be encountered in the information system. It is very important because without the ability to control, a lot of things will be affected including the performance and work of the personnel in the university. In the case of a business oriented organization or company the inability to control their own information system will greatly affect their business considering that their business relies on their system. If it so happened that they will encounter problems in their information system they would not know how to remedy it leaving the company idle and thus affecting their income too.
Confidentiality of Data
Because in-house staffs will be tapped to make the information system of the university there is a great reliability that the information or the data that will be used or involved in the system are kept within the school and maintained confidential. There may be a risk on the confidentiality of the data when you choose to outsource a certain information system because you may need to hand the data to them so they can transfer the data into the system that you or an organization purchased from the outsourcing company. In the case of a business oriented company or organization the confidentiality of data is a very important factor. Their data is considered as a vital element in their information system and if it falls in the wrong hands it could be the downfall of their company.
Promotes Direct Management
Most organizations would prefer direct management because they want to have hands-on control over their development in all aspects on their business. It is important because you compared to any other person or company is the one who really understands the business and flows within you company. It is much better compared to relinquishing or I may say hand over the control to an outsourcing company or firm who does not fully understand your business. In-sourcing allows you or the company to direct themselves and let their knowledge and direction guide the company to a more effective impact development process.
Timeliness
If you’re working on a tight schedule and you want you work to be done, you could just call your staff and have meeting regarding an urgent matter, a project perhaps. Then you could discuss timelines and because they are your employees they will surely abide the timeline. Plus you have an overview or update on the task that is being done and you will know what is happening, what is lacking and what is needed to be done. There are many scenarios where timeliness is involved.
There are many advantages and disadvantages in in-sourcing and even in outsourcing. My stand is based on the current situation of the university. This issue of in-sourcing and outsourcing has become a hot topic is forums and blogs. There had been many debates about this issue though it has been said that the choice between in-source and outsource depends on the current situation of a company or organization. I have a post similar to this one in my personal blog. The link to my personal blog can be found below. This post is open for criticism and I’m looking forward to add more information in this post.
Mus' Box: http://mus08.blogspot.com/2009/08/in-house-or-outsource-which-is-better.html
(Before I start I would like to define the terms involved in this post so that the ones who do not know may also know)
IN-SOURCE OR IN-SOURCING
From what I’ve posted in my personal blog in-house or in-sourcing refers to the business practice of using a company’s or organization’s own personnel, staff, funds and resources to produce a commodity or service for the company or the organization. This is in contrast to the production being outsourced or contracted out to another company. Organizations involved in production usually opt for in-sourcing in order to cut down the cost of labor and taxes because they would not to hire workers or outside service providers. This trend has increased since the year two thousand six (2006). Some organizations that shift or employ in-source are usually those who have been to outsource and was not satisfied with it. Some also think that through in-source they can have better people support and better control over the work outsourced by in-sourcing their work rather than outsourcing it.
OUTSOURCE OR OUTSOURCING
Outsourcing on the other hand is the agreement between two companies in which one company would provide its services to the other company that has usually provided in-house. Outsourcing has become a trend that is common in Information Technology and other industries wherein in some cases the entire information management of a company is outsourced. Organizations that choose outsourcing think that they could acquire a lot of advantages from it. Some organizations choose outsourcing because they get high reliability, less costs and high-quality services.
(Going on to my stand, by the way I choose In-sourcing for the university.)
Looking at the present situation of the information system of the school which has been shifted from outsource to in-source it would imply that the school was not contented of the outsourced system or the outsourced information system did not meet the needs of the school or maybe the outsourced information system was too expensive to maintain. Anyway, after reflecting about the current issue and after the sessions and sharing we had during our previous meetings in Management Information System 1 subject, I will take the position of in-sourcing. I have posted something about in-sourcing and outsourcing in my personal blog and I remember writing there that the decision of school to shift to in-sourced information system was not a good decision because they decided to shift abruptly. However, this time I would take my stand in in-sourcing the information system of the University of Southeastern Philippines. Why? Because this time we have time to evaluate the current information system of the university and since the current trend of the school is in-source. My decision to choose the side of in-sourcing is not solely because the current trend of the university but because this is a time to rethink. What if this is the first time that the school would acquire an information system, would it be in-sourced or outsourced?
I choose the side of in-sourcing considering the current situation of the school plus it gives a lot advantages like confidentiality of data, less cost, etc. However, I would like to imply that information systems planning takes time and I mean a long time to conjure something complex like an information system considering that there are steps or procedures that needs to be taken into account to be able to come up with an effective information system.
Why in-source? Let us first take into account the current situation of the university (University of Southeastern Philippines). The university lacks the budget to maintain funding an outsourced information system which was the trend of the university before. The university also has in-house staff, capable in-house staff that can be tapped to plan and create the information system of the school. Plus they already know the school’s system which makes them more adept. In-source or outsource has advantages and disadvantages and it matters on the situation of the organization or the company.
ADVANTAGES OF INSOURCING
I have identified advantages of in-sourcing, some of it came from me and some were searched through the internet.
Lessen Cost
I think that one of the big reasons why the university shifted to in-source is to be able to lessen the cost. Lessen the cost of hiring new personnel to administer the new information system. If the information system is in-sourced the people that would administer the information system are those who made the system. Plus the university would need to hire people who will train the personnel who will be in touch with the information system or the ones who will be using the information system because the staff that will create the system is already acquainted with it and he/she can also be utilized to train the other personnel without involving a big deal of money. Compared to outsourcing an information system you will need to hire a resource person who will train your personnel if ever the information system that you will be outsourcing is new to them, meaning they are not yet acquainted with the system. If it was in the case of a company or organization that is involved in producing certain products, in-sourcing will be a great advantage because these kind of business needs a big workforce and if they have the workforce they wouldn’t need to hire laborers from other companies and the like.
Better People Support and Control
In-house staff could train the personnel to be acquainted with the information system so there would be no need to hire a resource person who will be training the personnel in the university. On the time that the system will be implemented and deployed there will be times that the personnel using the information system will encounter problems that have not been encountered before. In this case in-house staff can quickly look into the information system to find out what is wrong and can also possibly fix it pronto. By this there will less time that the information system will be in idle state if ever it encounters problems compared to relying on the support from outsource companies which may not have a twenty-four hour available support for their information system if it encounters problems. Again this could also lessen cost of hiring someone who will check and maintain the functionality of the system and lessen the cost of maintenance. Control is one of the advantages of in-sourcing an information system because the ones who created the system will know how fix any problem that will be encountered in the information system. It is very important because without the ability to control, a lot of things will be affected including the performance and work of the personnel in the university. In the case of a business oriented organization or company the inability to control their own information system will greatly affect their business considering that their business relies on their system. If it so happened that they will encounter problems in their information system they would not know how to remedy it leaving the company idle and thus affecting their income too.
Confidentiality of Data
Because in-house staffs will be tapped to make the information system of the university there is a great reliability that the information or the data that will be used or involved in the system are kept within the school and maintained confidential. There may be a risk on the confidentiality of the data when you choose to outsource a certain information system because you may need to hand the data to them so they can transfer the data into the system that you or an organization purchased from the outsourcing company. In the case of a business oriented company or organization the confidentiality of data is a very important factor. Their data is considered as a vital element in their information system and if it falls in the wrong hands it could be the downfall of their company.
Promotes Direct Management
Most organizations would prefer direct management because they want to have hands-on control over their development in all aspects on their business. It is important because you compared to any other person or company is the one who really understands the business and flows within you company. It is much better compared to relinquishing or I may say hand over the control to an outsourcing company or firm who does not fully understand your business. In-sourcing allows you or the company to direct themselves and let their knowledge and direction guide the company to a more effective impact development process.
Timeliness
If you’re working on a tight schedule and you want you work to be done, you could just call your staff and have meeting regarding an urgent matter, a project perhaps. Then you could discuss timelines and because they are your employees they will surely abide the timeline. Plus you have an overview or update on the task that is being done and you will know what is happening, what is lacking and what is needed to be done. There are many scenarios where timeliness is involved.
There are many advantages and disadvantages in in-sourcing and even in outsourcing. My stand is based on the current situation of the university. This issue of in-sourcing and outsourcing has become a hot topic is forums and blogs. There had been many debates about this issue though it has been said that the choice between in-source and outsource depends on the current situation of a company or organization. I have a post similar to this one in my personal blog. The link to my personal blog can be found below. This post is open for criticism and I’m looking forward to add more information in this post.
Mus' Box: http://mus08.blogspot.com/2009/08/in-house-or-outsource-which-is-better.html
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