Outcomes addressed in this activity:
? Differentiate between software acquisition alternatives and outsourcing options
? Assess the viability of a business case using three unique financial measures
? Recommend a “go” or “no go” decision based on the presented case.
IT460-1 Compare various types of information systems
As with past weeks, to find the needed information for this week’s assignment please go
to the “Case Study Assignment Link” found under Learning Activities in Session 7.
Only the following items are required:
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 “pays back”
iii) Return on Investment
iv) Net Present Value
For this section of the assignment please use the following “numbers”:
Salaries incurred by the development team $ 125,000
Training center hardware and software required to get ready for
the new system
Testing costs to ensure a quality application is released $ 15,000
Upfront Testing Licensing fees $ 5,000