Chapter 5, Problem 7DQ

Explanation of Solution

Advantages and disadvantages of using software service providers for organization’s software needs:

Advantages:

• Large scale companies can easily rely on software service providers to make the management of services easy.
• A company which has many departments can easily depend on a software service provider in order to deliver all the necessary software for each department.
• Company which uses software service provider need not to worry about the development of software for each of the departments which helps in saving time and money.
• Relying on a software service provider shifts, the attention of company from software to other tasks which will help in utilizing the time in a productive manner...

Explanation of Solution

Issues that arise while making a decision:

Management:

• People must determine what the organization needs and select software that is appropriate to accomplish its needs.
• Management should be able to analyse the price of the software and also the ease of maintaining it.
• If the cost of suing a software service provider is more than the cost of the organization’s own software, then the company would not prefer to rely on a software service provider.

Organization:

• The organization has to first analyse the capabilities of the software that a software service provider provides...