Essentials of MIS (13th Edition)
Essentials of MIS (13th Edition)
13th Edition
ISBN: 9780134802756
Author: Kenneth C. Laudon, Jane Laudon
Publisher: PEARSON
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Chapter 5, Problem 6DQ

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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...

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