In-House Versus Outsourcing Approaches Essay Example | Topics and Well Written Essays - 1250 words

In-House Versus Outsourcing Approaches - Essay Example However, Kamarazaly (2007, p.4) argues that decisions on choosing between outsourcing and in-house should not be based solely on financial evaluation.Comparison of In-House and Outsourcing Approaches Nxt is involved in the business of delivering parcels and it consists of two companies with NXT Services specializing in non-secure items while Nxt Secure deals with secure items. Moreover, the organization sub-contracts other courier companies to deliver 75 percent of all items at a fixed charge. Upon delivery, courier companies have to give feedback to Nxt which in turn scans the feedback to the customer to confirm the delivery. Presently, the company is facing several hurdles in its operations which can be rectified innovation and implementation of modern information technology systems. Nxt currently relies on externally sourced PostCode Address File, hand signed documents upon delivery of items and the driver's information to know the exact place that they are. This has led to variou s problems such as delayed delivery of items, drivers diverting from the route thereby increasing the operational cost and the hand signatures delay the confirmation of delivery. As noted by Zizakovic (2004, p.1), there comes a time when the present process cannot continue for long and the available system starts to show some weakness signals the time for making a decision to build a new system, consequently, the organization has to decide whether to build it in-house or outsource. Nxt has come to this point; the organization has a project support office that can lead the way in building a new system or they can source from a third party. Nxt wants to implement a GPS system that will monitor and relay back information on the exact position of the vehicle in real time. The telemetry system allows the sharing of information and will relay to the hub data on stoppage of the vehicles, detect any problems in the route and thereby facilitate the making of decisions and also improve the se curity of the driver when traveling alone. Moreover, the company is also contemplating investing in PDAs which will help customers to electronically sign on receipt of items thereby dealing with the problem of delayed signatures which are used to monitor performance. PDAs if adopted will also help in identifying new markets and save time used in the delivery. Despite the great potential that implementation of these technologies will have in streamlining the operations of Nxt; the organizations face financial constraints and the fact that it has never been involved in the implementation of such a huge project.