Systems Analysis and Design

■ is having a firm develop or run your

application on their computers
■ all you do is supply input and take output

REASONS for using outsource:

cost-effective
overcome operating problems the
organization faces in its information system
unit
can achieve more effective computing by
turning over all operations to a more
experienced, computer-oriented company

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 Systems Analysis and Design

Hardware Manufacturers

Packaged Software Producers

Custom Software Producers

In-House Development

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 Systems Analysis and Design

The advantages to running your new system on the

existing platform :
1. Lower costs as little, if any, new hardware and
system software has to be purchased and
installed.
2. Your information systems staff is quite familiar
with the existing platform and how to operate
and maintain it.
3. The odds of integrating your new application
system with existing applications are enhanced.
4. No added costs of converting old systems to a
new platform, if necessary, or of translating
existing data between current technology and
the new hardware and system software you
have to acquire for your system.

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 Systems Analysis and Design

Reasons for acquiring new hardware or system

software:
1. Some software components of your new system
will only run on particular platforms with
particular operating systems.
2. Developing your system for a new platform
gives your organization the opportunity to
upgrade or expand its current technology
holdings.
3. New platform requirements may allow your
organization to radically change its computing
operations, as in moving from mainframe-
centered processing to a database machine or
a client-server architecture.

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