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
Assignment Instructions:
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”:
Developmental Costs:
Salaries incurred by the development team $ 125,000
Training center hardware and software required to get ready
for
the new system
$ 45,000
Testing costs to ensure a quality application is released $
15,000
Upfront Testing Licensing fees $ 5,000
P
