Explain the four Software Acquisition Options? What are the risks with each of these options? Give an example of when you might use one of these options in your organization or an organization you are familiar with.


The four software acquisition options are in-house implementation, outsourced implementation, packaged application implementation, and Cloud / SaaS implementation. In-house is best described as when an organization builds their own software solution for their problems. Outsourced is where an organization pays someone else for a software solution. Packaged application is where an organization buys a pre-built software to cover a generic need. Finally, cloud/SaaS is where an organization uses the internet and web browsers to access a packaged solution.

The risk of using in-house implementation is that you will have to spend both money and time to get the solution right and working properly. The risk of using outsourced implementation is that there could be miscommunication on what is needed in the solution which could also cost both time and money. The risk of packaged applications is that they could be too broad or general and will not meet the requirements the organization needs. The risk of cloud computing or SaaS is the lack of control that comes with it.

In our organization we tend to use outsourced and in-house implementations the most. Some of the hardware we use has to be outsourced to the company that manufactures it because of trade secrets or contracts. If possible we like to use in-house as much as possible because of how easy it is to integrate with our other systems. It definitely does take time to implement our own in-house solutions but is well worth it in the end for the control we have over our software.

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