advantages and disadvantages of developing a database-enabled company Website in-house as opposed to outsourcing this task

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May 18, 2014 by Ozgur Ozden

Outsourcing becoming very popular these days therefore many organizations are outsourcing their websites or databases to a third party. There are advantages and disadvantages of outsourcing and in-house development of database enabled web site. Let us review these points.
Advantages of In-house development:
• Control of database: Since database is built in-house, it can be better controlled and maintained by the company. Necessary modifications can be performed very quickly.
• Staff Allocation: Staff working in the company can be allocated for database related website projects as well as the current hardware, software of the company can be used for the development. If the company has limited sources, allocating people to a new project might create problem in other areas.
• Proprietary knowledge: Materials about Intellectual properties, copyrights, R&D developments, financial figures and other important data stays in the company and not shared with third parties.
• Instant Access: You can access and change the project instantly. Gordon(2009)
Disadvantages of In-house development:
• Extra work: developing a database related website in house creates extra work for the IT department of the company.
• Expertise: Necessary know-how and technical expertise to develop and maintain a database connected website may not be available in-house.
• No Advice: Advice will not be available from a vendor who has experience in the fields and guide the company into the right selection of database usage and possible best examples.
Advantages of Outsourcing:
• Prior experience: Most of the times outsourced companies have good amount of experience in the field of developing and managing the database linked website. They are capable of guiding, advising the company as well as providing the latest technological solutions. They can provide maintenance too.
• Best Experience: can be developed for you by the experts.
• Cost saving: One of the major advantages for outsourcing is cost savings and timing. Vendors keep the same expertise in their companies so they might be able to provide better prices. İn the meantime contracted and predicted delivery time is also another advantage.

• Latest technology: Your vendor will project the latest technological developments into your project. Your project will be up to date and tech savvy.
Disadvantages of Outsourcing:
• Loss of control: when you outsource you loose the control on the website and your database. İf you require instant changes, this will be difficult to perform compare to the in-house built projects.
• Stability of the vendor: on the long term is very important. Economic crisis, change in management, loss of key personnel may affect the project or the maintenance.
• proprietary details: You will be sharing your financial figures, intellectual properties, R&D documents with another party. Security of these documents is extremely important.
Developing a project in-house or outsource is actually depend on the company. Every company has different needs, structures and proprietary items to protect. Each company needs to decide which parts will be outsourced and which parts will be developed in house.

1- Einar Mykletun, (unknown) Authentication and Integrity in Outsourced Databases (Online) Available at: [Accessed at 8th June 2013]
2- B. Padmavathi , Ajeet Ram Pathak (2013), Survey of Confidentiality and Integrity in Outsourced Databases, International Journal of Scientific Engineering and Technology (Online) Available at: [Accessed at 8th June 2013]
3- Arthur Hughes, (2011) Why building a marketing database should be outsourced Available at: [Accessed at 9th June 2013]
4- Scott Gordon (2009) Should You Outsource or Keep IT In-House?Available at: http://www.ecommercetimes .com/story/67653.html [Accessed at 9th June 2013]


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