Sunday, June 21, 2009

In Source or Out Source

Since, I am not a real-time organization owner as of now; most probably my answer would change at any time in the near future (hehehe). If I am an owner of a company I would really utilize and use all the talents, skills, and capabilities of my employees that would mean I am really in favor of an in-housing. Of course, there are some considerations in deciding as to in-source or outsource.

As what I have always been saying, I really want to become a systems analyst someday, and so, I have read a statement saying that “the more an analyst knows about how an organization works, the more effective he can be”,… and so I could say, that if one organization is planning or choosing whether to in-source or outsource especially if it involves a complete renovation of the organization in-sourcing is the best way. Since, employees working for that organization are already familiar with all the organization’s transactions.

Well, if an organization has limited number of employees and in-housing a job would cause TOO much delayed for the operation of the business, then better choose outsourcing. Also, if the business is quite big, that it operates world-wide, then outsourcing job is very much applicable (call center companies).

In the case of USEP, I would not recommend outsourcing. Why? Let me focus my answer to the case of Mr. Cagape and Mrs. Mercado. Before, the university has been paying P75, 000 (I don’t know if the figure is exact) every month for a system made by a third-party company. And I think, that figure is quite big enough and a pain in the pocket for the university.

Why the need to pay for that big amount, if the university itself could make their own system?
What’s with the vision, mission, goals and objectives if the university itself is paying for a technology made by a third party company? Isn’t that an insult or a degradation of honor?
It would be the pride and honor of the programmer but still, a part of the university is given a credit. As one said , “ it takes years of experience working for a company to really understand what is going on”.


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