Tuesday, July 7, 2009

SAD2 ASSIGN1 -- hear my Say!!!

Enrolment is the registration/enlisting of students in the university or school that they want to attend to. And one important thing that should be given importance by the university when it comes to the enrolment process is the enrolment system. It has a big impact on the enrolment process for it is one of the key factors to decide on how the enrolment process will take place. Whether it will be fast and smooth sailing or make it the other way around. That's why choosing on who will make the enrolment system is a big and significant decision to make. Many factors should be considered, and one important factor is the cost.

Cost became a big factor because there is a big difference with the price of in-house sourcing and the out sourcing. As what we have known, University of Southeastern Philippines is a government school, so every little amount that will be spend should have a good reason to spend to. To understand more the difference between in-house sourcing and out sourcing let us define the two.
Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider. The client organization and the supplier enter into a contractual agreement that defines the transferred services. Under the agreement the supplier acquires the means of production in the form of a transfer of people, assets and other resources from the client. The client agrees to procure the services from the supplier for the term of the contract. Business segments typically outsourced include information technology, human resources, facilities, real estate management, and accounting.
Outsourcing is the transfer of the delivery of services which affects both jobs and individuals. It is difficult to dispute that outsourcing has a detrimental effect on individuals who face job disruption and employment insecurity; however, its supporters believe that outsourcing should bring down prices, providing greater economic benefit to all.

Some of the reasons on why organizations tend to practice outsourcing are the following:
1. Cost savings, the lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. 2. Focus on Core Business. Resources (for example investment, people, and infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specialized IT services companies. 3. 3. Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement. 4. Knowledge, access to intellectual property and wider experience and knowledge. 5. Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. 6. Operational expertise, access to operational best practice that would be too difficult or time consuming to develop in-house. 7. Access to talent, access to a larger talent pool and a sustainable source of skills, in particular in science and engineering. 8. Capacity management, an improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier. 9. Enhance capacity for innovation. 10. Reduce time to market, the acceleration of the development or production of a product through the additional capability brought by the supplier. 11. Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.

If there are advantages there are also disadvantages of out sourcing, and some of these are: Quality risk, one such factor is opportunism by suppliers due to misaligned incentives between buyer and supplier, information asymmetry, high asset specificity, or high supplier switching costs. Quality of service is measured through a service level agreement (SLA) in the outsourcing contract. In poorly defined contracts there is no measure of quality or SLA defined It may also be lower quality through design to match the lower price. Staff Turnover is higher under an outsourcer and key company skills may be lost with retention outside of the control of the company. Company knowledge, outsourcing could lead to communication problems with transferred employees. Security before outsourcing an organization is responsible for the actions of all their staff and liable for their actions. When these same people are transferred to an outsourcer they may not change desk but their legal status has changed. They no-longer are directly employed or responsible to the organization. This is one of the most complex areas of outsourcing and requires a specialist third party adviser.

While, In-house sourcing is the opposite of outsourcing; often defined as the delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation. In- house sourcing is a business decision that is often made to maintain control of critical production or competencies. In- house sourcing is widely used in an area such as production to reduce costs of taxes, labor, transportation, and etc. In- house sourcing was becoming more common by 2006 as businesses had less than satisfactory experiences with outsourcing.

And with regards to the question on what do you think is/are the reasons why the university decided to tapped in-house resources, and if was it a good decision, well for me, the university did a good decision on tapping our own resources like our instructors; Engr. Michael Angelo Cagape and Maam Tamara Cher Mercado for they are not only good at their professions as instructors but also as programmers.

As what I have knew they were also the one who made the previous enrolment system of the university before the former administration tapped out sourcing, which for me, is not a so good idea. Because, being an Icean or a student of the Institute of Computing it made me feel proud to be part of the college where instructors are not only good at the classroom but also in making use of what they are teaching. That is why I was surprised when I learned that the administration had tapped out source when they already have their own resources. When the only disadvantage that I have seen when Sir Cagape was still in-charge of the university's system is that it keeps him so busy that sometimes it divides his time on teaching and maintaining the system.

And now, what happened to the out sourced system? It only lasted for almost a year; it seems that the administration had just wasted money and time on out sourcing especially when it did not last long enough. Maybe now they have realized their fault. That is why they have decided to give back and make use of the in- house programmers in the university, not only they can easily communicate with them whenever they have concerns regarding with the system also they can save extra expenses.