Option 1: SaaS versus In-house Risks and Rewards Your manager has asked you to i

Question

Option 1: SaaS versus In-house Risks and Rewards

Your manager has asked you to investigate a Customer Relationship Management (CRM) solution offered as COTS software for in-house installation and as a Software as a Service Cloud solution. Assume the SaaS solution uses a multi-tenant architecture. In a 2- to 3-page paper, discuss the risks and rewards of the SaaS solution as compared with the in-house installation.

Include a title page and reference page. Make sure your paper follows APA style according to the CSU-Global Guide to Writing and APA Requirements.

A scholarly or peer-reviewed journal article

A newspaper article

Trade or industry journal article, publication, or website, including those from trade organizations. Library

Use two CSU-Global Library resources and/or outside, credible academic sources other than the textbook, course materials, or other information provided as part of the course materials. (You may not use Wikipedia for any CSU-Global assignment.) For this assignment, a credible source is defined as:

A scholarly or peer-reviewed journal article

A newspaper article

A trade or industry journal article, publication, or website, including those from trade organizations

Explanation / Answer

In the present business seniario where the businesses are dynamic in nature, a CRM solution for an organisation may not suit another organisation. Even if the organisation is from a same industry, they may differ in its services to the customer. A CRM solution is considered apt, if it is CUSTOMISED to the needs of its client and to the service provider.

SAAS, the way forward :- Customisation of a CRM solution may be required to be done, which requires IT expertise. It is not financially viable to have such experts on the roll of the company for a one time activity. Also hiring them is not easy as it requires a thorough check if its the suitable person for the project. After hiring, if he is the key person who made the changes and work for couple of years and quit, it puts enormous pressure on the project. Hence its better to out source the entire project to a competent team of IT professionals.

The dynamic nature of Information Technology results every 2 year old technology redundant. The outsourced team will be in sync with the latest developments and ensure the project is launched in time and customized as per requirement of the customer.

No physical servers - An in premise system (inhouse system) requires server rooms to be built. They need air conditioning and also suitable manpower to run the system. By adopting SAAS model, the additional costs of maintaining servers and manpower can be averted.

SAAS model is however expensive. Although they provide the support required to install a customised CRM, the costs are on a higher side. However it is in the best interest of the organisation to have a outsourced model when it comes to a dynamic industry such as IT.

Data security is one issue to be dealt with in a outsourced model. If there is a breach of confidential data and is compromised by the outsourced firm, it could lead to disastrous results to the organization. The customer data is a backbone of any organization and hence it is required to be safeguarded against any breach, virus attack or hacking by the internal employees of the outsourced firm.

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