What do you think is/are the reasons why the university decided to tapped in-house resources, was it a good decision?
The early years of my college life as I can remember was very difficult for me. Aside from the teething troubles in adjusting the new independent life, the new teaching method seems to be the greatest challenge of my college life. Since I don’t have any background of programming, I really found hard in dealing this subject. That is why before, every time we were asked to do a very difficult machine problems, I have always in mind that maybe in our future projects we will be developing systems that is intended for the university application. I thought that the existing systems implemented in the university was made and developed by the Institute of Computing graduates that is why I was really surprised to know that the admin has been implementing and using systems that were outsourced. I believed that even the student in IC has already the capability of developing of such systems if given ample time, how much more with the faculty? Why seek the help of outside when the university’s human resources capability is more than enough?
“Outsourcing occurs when a company purchases products or services from an outside supplier, rather than performing the same work within its own facilities, in order to cut costs. The decision to outsource is a major strategic one for most companies, since it involves weighing the potential cost savings against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, training administration, customer service, transportation of products, benefits and compensation planning, payroll, and other human resource functions. A relatively new trend in outsourcing is employee leasing, in which specialized vendors recruit, hire, train, and pay their clients' employees, as well as arrange health care coverage and other benefits”,( http://www.answers.com/topic/outsourcing)
I have read articles why a company decides to outsource. The article mentioned that successful outsourcing requires a strong understanding of the organization's capabilities and future direction. The article cite William R. King’s explanation in Information Systems Management, "decisions regarding outsourcing significant functions are among the most strategic that can be made by an organization, because they address the basic organizational choice of the functions for which internal expertise is developed and nurtured and those for which such expertise is purchased. These are basic decisions regarding organizational design." I have learned that outsourcing has several advantages. In outsourcing, the company can cut cost or can have a better control over outsourced function. Another reason why companies prefer outsourcing is to minimize the changeability in staffing. Its purpose is to lessen the workload of their employees. In a newbie company, they need to eliminate distractions and focus themselves on their core competencies. Outsourcing can free the entrepreneur from monotonous and time-consuming tasks. Morale is often-overlooked but can have a very notable benefit that can be gained in outsourcing relationship. Lack of internal expertise can result in poor attitudes and ultimately poor performance. Although there are numerous advantages of outsourcing, there are still many companies preferring in housing. Accommodating the special needs of users is just one reason why companies continue to develop their own applications.
Well, I think the primary reason why the administration decided to tapped in-house resources is to save the operational cost because I heard that the system is quiet expensive. Maybe the amounts save from the budget allotted for outsourced system will be invested in much more important needs (like constructing the USeP Institute of Computing building) of the university which can be beneficial for the students as well the university’s administration. I also think that finally the administration has finally recognized the relevance of the skills of highly profiled faculties of the Institute of Computing. The university has the qualified skills to provide its needs for today and in the future as well. And beside, the USeP employees may have a better understanding of the university’s faculty and students needs. We have special needs that only in-house resources can attend. In this way also, disadvantages in outsourcing can be lessen. Improper or poor communication between the vendor and the university can be diminished. Communication gap can lead to project failures to meet our needs and requirements. Also, the university can develop our own system that is more cheap since in-house have deep subject-matter expertise. Although the Institute of Computing students has slightly affected because of pulling two of the IC faculty but the overall result is going to be what is expected.
With the above mentioned facts, I guess the administration made a wise decision to finally patronize our own; although I cannot say that the overall system is successful since it is too early to conclude. Utilized the resources we have. I am sure that we are certainly aware of the recession, so maybe the USeP officials has find ways to at least lessen its impact in the university. The administration must continually handle wisely the challenges in the present situation of our economy especially that the quality of the academe’s performance is largely affected by how well the administration handles these certain challenges. Although in today’s technology, most companies recognize many advantages of buying software applications outside rather than developing them in-house, the University of Southeastern Philippines should give chance in-housing since custom built applications are still very much important in the university. The policies, procedural methodologies, and accomplishments should be regularly measured to not only justify the existence of the department, but also provide adequate pressures and performance incentives. The University of Southeastern Philippines should stop trying to avoid in-house software development. Packaged apps don't work right out of the box, and relying on them alone gets you mediocrity at best. To break away from the pack, extend applications with custom code.
The benefits of making the most of in-house resources will hopefully allow the University of Southeastern Philippines to continually implement innovative and pioneering programs and project vital in the achievement of its endeavors.