The logic of Software Development and Maintenance Partnering
Because Business Processes Are Complex
For most companies, there always will be a need for customized business software. Granted, the interoperable, macro-enhanced suites of general purpose business software for word processing, database management, and accounting functions are exceptionally powerful and flexible. Also true, it is possible to develop business tools using these suites for nearly any business application. Nevertheless, the more complex the business rules being implemented, the more complex the system design becomes, which directly relates to complexity in development, maintenance, and training employees to use it. When company developed tools using these suites are employed on an enterprise scale, the complexity in learning and using them can overwhelm all but your most savvy employees.
Because Simplifying The User-Software Interface Is Necessary
Business tools like those described above become a bottleneck to productivity and a burden to the company at a very low threshold of complexity. The reason is simple. A general purpose tool applied in its intended way to a business problem is not adept at information hiding; the art of displaying only those data elements, fields, cells, attributes that are necessary to support a specific job. Large data requirements at the work station results in sensory overload of the operator. This directly correlates to processing errors which cost an order of magnitude more in effort to correct than to make. Simplifying the interface between the worker and the computer is what customized software provides.
Because Core Employees Must Be Working The Bottom Line
Corporate downsizing is an increasingly significant aspect of contemporary business culture. Very few medium to large organizations have avoided dealing with the fact that corporate personnel cost increases are outpacing growth in revenues. A basic tenet of corporate down sizing is to cut positions that do not add to the revenue bottom line and outsource their functions.
Is Information Technology a core function in today's business world?
Some parts are. Having a small staff of technical support personnel to provide immediate response to computer problems, training, loading new software, and clearing work stations of viruses pay great operational dividends while indirectly supporting the bottom line.
Should your IT staff program company computers and work stations?
If they are, the staff is too large. There is a need for customized software. It is an easy exercise to show that life-cycle costs are measurably lower when employing well-developed, customized business process software. But its development and maintenance should be outsourced. The return on investment for the cost of contracted software and its maintenance, balanced by the operations savings alone, is a small fraction of the useful service life of the system. When including cost savings by reducing the number of overhead personnel, the argument for outsourcing is undeniable.