Create a new account

It's simple, and free.

E-COMMERCE OUTSOURCING

"Outsourcing" (the hiring of outside experts or companies to fulfill part of the business model) is a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving convenience, the quality of goods and services and increasing the speed of service delivery. Outsourcing is defined by the CCTA (Central Computer and Technology Agency) as: the management and operation of part or all of an organizations IT services by an external source, at agreed service levels to an agreed cost formula over an agreed period" (Halvey & Melby 48).

When applied to the multivariate complexities of Electronic Commerce, the definition encompasses more than just the particular financial transactions that exchange funds. Electronic commerce is conducted in any industry, from manufacturing to retail sales, to banking and finance, to publishing, entertainment, and many others.

Halvey and Melby (1999) argue that "One of the major issues facing information systems management is that of outsourcing part or all of the organization's IS function to a specialist supplier" (Halvey & Melby 23). Part of the reason for the trend to outsourcing is the complexity of the decision-making required when a company chooses to enter the E-Commerce competition.

When it comes to building the complete E-commerce site there seem to be much more complex processes to deal with. Table 1 shows the typical steps involved, along with the software choices available, some hardware specifications and the legacy requirements.

One of the primary reasons companies are turning to outsourcing is to control costs. For along with the costs of the software and hardware summarized above, there are also substantial costs connected with the employee burden of hiring good programmers and MIS personnel to run the E-Commerce program along with extra clerical staff needed for verification. In addition to these costs (often refe...

Page 1 of 8 Next >

More on E-COMMERCE OUTSOURCING...

Loading...
APA     MLA     Chicago
E-COMMERCE OUTSOURCING. (1969, December 31). In LotsofEssays.com. Retrieved 12:29, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1693650.html