A midsized sporting goods manufacturing company would like to automate some of its existing business forms and processes. A preliminary estimate of the time and costs of the project (see below) considered three software development and maintenance options: 1) in-house development, implementation, and maintenance; 2) outsourcing the development and maintenance to an offshore company; and 3) purchase and integration of commercial, off-the-shelf product Tasks: Using the attachment 1. Outline the pros and cons of each of these options. 2. Based on a review of the pros and cons, which option would you recommend. Provide rationale and include any assumptions made in arriving at a recommendation.

Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
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A midsized sporting goods manufacturing company would like to automate some of its existing business forms and processes. A preliminary estimate of the time and costs of the project (see below) considered three software development and maintenance options: 1) in-house development, implementation, and maintenance; 2) outsourcing the development and maintenance to an offshore company; and 3) purchase and integration of commercial, off-the-shelf product

Tasks:

Using the attachment

1. Outline the pros and cons of each of these options.

2. Based on a review of the pros and cons, which option would you recommend. Provide rationale and include any assumptions made in arriving at a recommendation.

 

Outsource COTS purch
agile dev & sw dev & & Integ
In-house
maint
maint
Total months until full capability
Months until partial capability available
Company personnel cost to achieve full capability
External purchase costs (purchase hw/sw/support)
Estimated annual maintenance costs (after full cap)
(assume a 5-7 year life before software is replaced)
18
15
6
3
1
$1.2M
$50K
$150K
$700K
$125K
$100K
$500K
$150K
$175K
Transcribed Image Text:Outsource COTS purch agile dev & sw dev & & Integ In-house maint maint Total months until full capability Months until partial capability available Company personnel cost to achieve full capability External purchase costs (purchase hw/sw/support) Estimated annual maintenance costs (after full cap) (assume a 5-7 year life before software is replaced) 18 15 6 3 1 $1.2M $50K $150K $700K $125K $100K $500K $150K $175K
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