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Acquiring and Managing Resources1-1
Acquiring and Managing Resources1-1
MANAGING RESOURCES
INFORMATION INFRASTRUCTURES
GROUP MEMBERS
• In some cases the outsourcing entails moving the services abroad i.e., offshoring in
pursuit of the cost or expertise advantages.
• In other cases the company may outsource just the development or maintenance of
their information systems, with the outside company being a systems developer.
• Cloud computing is increasingly being adopted as a source of information services.
• Companies may choose to acquire an application by leasing a proprietary package
from a vendor under a license and having the software customized internally or
externally by the vendor or another outside contractor.
• The principal tasks of information systems specialists involve modifying the
applications for their employer’s needs and integrating the applications to create
a coherent systems architecture for the firm.
Advantages of Acquisition from external resources
• It allows firms to acquire the best technology available
• Thus helps firms catch up with competitive moves or fill market gaps.
• Helps firm to overcome limitations of their internal resources and
capabilities.
• Allows firms to specialize deeper in their core competences while relying
on outside firms that are specialized in other fields for complementary
expertise and skills.
Disadvantages of Acquisition from external resources
• Heavy reliance on external technology acquisition may have
disadvantageous consequences.
• Available resources and capabilities for technological sourcing are limited
hence the more resources firms invest externally the less they are able to
invest internally
• Cannot be easily transferred and applied to different domains and often
firm fails to successfully create innovation from it
• The costs of the transfer process may also reduce the efficiency of the
external technological sourcing.
Internal information systems development