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2. (35 points) Imagine that you are the head of information technology for a fas

ID: 3920354 • Letter: 2

Question

2. (35 points) Imagine that you are the head of information technology for a fast-growth e-commerce start-up. You are in charge of development of the company's Web site. Consider your options for building the site in-house with existing staff, or outsourcing the entire operation Decide which strategy you believe is in your company's best interest and create a brief introduction outlining your position. Especially, your introduction must have answers for the following questions: Why choose that approach? What are the estimated associated costs, compared with the alternative? (You'll need to make some educated guesses here don't worry about being exact.)

Explanation / Answer

In case of a start up company, definatly investment and finances will be a big
constraint.But at the same time being a start up the services offered on the
website won't be big or that complex.Giving the development to the third party
we need to be very careful about the security of the developed features apart from
finances. So whomsoever we give the task of development, we need to ensure that
no functionality comes out in public prior to the actual product ,due to cut throat competition. Outsourcing development is always going to take lot of headache away as we don't have to worry about staffing, infrastructure setup, technological challanges and to some extent less monitoring and control etc.But at the same time the quality and processes will be a big concern.The inhouse cost will be generally high and also most of the focus will go in developing the application, rather than analyzing changing requirements and making the website strategically more competitive. However whatever be the case, the costing and the management of development of website inhouse or outsource will be the major deciding factors.

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