Ifferentiate between software acquisition alternatives and outsourcing options

Title: Systems Analysis and Design, Video Enhanced (8th Ed.)
Author(s): Shelly, Cashman & Rosenblatt
Physical ISBN: 0-538-47443-2 eBook
Publisher: Course Technology
Read: Chapter 7

1. The organization is asking us whether or not we should consider outsourcing the
TIMS assignment. For this part of our assignment, supply the following deliverables:
a) What are the pros and cons we must consider if we outsource our assignment?
b) What options do we have available if the outsourcing decision is made?
2. Perform three tasks to analyze in-house development of TIMS:
a) Using the financial numbers shown below provide the following:
i) Three year worksheet as depicted on Page 663 in the Financial Analysis Tools
section of our text.
ii) Simple Payback Analysis: In your own words, provide a sentence with
supporting evidence of what year our assignment a?pays backa?
iii) Return on Investment
iv) Net Present Value
For this section of the assignment please use the following a?numbersa?:(I will upload the table with the numbers in the Order Tracking Area)
Assignment requirements:
1. Outsourcing; options, advantages and disadvantages
2. Financial analysis; Payback, ROI, and NPV
Assignment Requirements
1. List the options available for the
possibility of outsourcing the TIMS
system
2. Created the three-year
worksheet
3. Using the worksheet data, a sample solution for payback
analysis was created
4. Using the worksheet data, a
sample solution for ROI was
created
5. Using the worksheet data, a
sample solution for NPV was
created