Question

Everybody knows that email is important, but should each company develop, own, support, and maintain its own email infrastructure, or should it instead use lower-cost or free services? That is the question that Michael Jagger, CEO of Provident Security, faced as he contemplated a costly upgrade of the company's internal email infrastructure. Founded in 1996 by Michael Jagger as a way to pay his undergraduate tuition, Provident (www. providentsecurity.ca) started out as a company that provided special event security. Today, it has grown to become a full-service security company with more than 4500 customers and 200 employees. Offering a wide range of services for residential, commercial, and industrial clients, Provident is organized into three divisions: guard services, alarm services, and special event,/personal protection. Guard services offers uniformed security guards and specialize in high-tech and pharmaceutical markets; it also offers community and mobile patrol services that guarantee a five-minute response to burglar alarms and client emergencies. The alarm services division installs, services, and monitors alarm systems for residential and industrial clients, including sophisticated closed-circuit television (CCTD and access control systems for the high-risk buildings of clients such as the federal government. The special event/personal protection division provides security for many important public figures, including elected officials and business leaders. The company's email system was based on Microsoft Exchange / Outlook and completely managed-v the company's smal1 but effective internal information systems staff. After an increase in vo1- ume, however, the system was beginning to show signs of strain, In addition, a recent analysis indicated that to cope with projected growth, Provident would have to invest a further $60 000 in a combination of hardware and software upgrades and operating expenses. To combat this expense, one employee suggested that Provident convert its internal email to Google's $50-per-user corporate G-mail service (www.google. com/apps / init. / en/business,/messaging.html+mai1). This service was very similar to Google's popular consumer email system and could be accessed from any Web browser, which meant that it required no hardware or software and was aval7ab7e anywhere. And not only was the service comparatively inexpensive, but it allowed Provident to maintain its existing email IDs and it integrated easily into other popular and useful Google applications, such as Google Docs and Googie Calendar. A few other organizations had already converted to G-mail, and as he considered whether to authorize the increased expenditure or not, Michael wondered whether it was time for Provident to get out of the email business.

Question 3 - How should a company decide which functions should be provided internally and which ones should be obtained externally? Is there a difference between the cafeteria or health services and an information system?

Answer 1

The functions which require highest amount of customization have to be internally provided. While, the general and standardized functions must be obtained externallt. The internal sourcing is much more labor extensive and expensive than external soucing.

Yes, there is a difference between cafeteria or health services and an information system. A cafeteria or health services can be easily analysed. If need be, the management of either can be changed easily. However, information system is the backbone of the organization. The strength of the organization depends upon it. And, if the information system is damaged, then the entire organization is at stake. Also, it isn't easy to replace or correct the IT.