Chapter 5, Problem 6DQ

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.

Disadvantages:

• The price of the software can be raised by the software service provider.
• The organization has to search for other options in order to cut the costs, if the price becomes unbearable.
• An organization has to always depend on the software service provider in terms of development.
• As the organization cannot develop their own software, their productivity and operations may get hampered.
• Incompatibilities among the software may arise when a company’s departments decide to develop and implement their own software...