Author Question: In one paragraph, explain why early outsourcing is often used for some parts of electronic commerce ... (Read 58 times)

brutforce · **on:** Jul 7, 2018

In one paragraph, explain why early outsourcing is often used for some parts of electronic commerce projects.

Question 2

In a paragraph or two, explain how intellectual capital (the accumulated mass of employees knowledge about the business and its processes) can be a factor in outsourcing decisions.

lorealeza · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

In many electronic commerce projects, the company outsources the initial site design and development to launch the project quickly. The outsourcing team then trains the companys information systems professionals in the new technology before handing the operation of the site over to them. This approach is called early outsourcing. Because operating an electronic commerce site can rapidly become a source of competitive advantage for a company, it is best to have the companys own information systems people working closely with the outsourcing team and developing ideas for improvements as early as possible in the life of the project.

Answer to Question 2

Companies today recognize the value of the accumulated mass of employees knowledge about the business and its processes. The value of an organizations pool of this type of knowledge is called intellectual capital.
Although the value of intellectual capital is hard to measure and does not appear in the accounting records or financial statements, most companies today develop estimates of it and try to manage its growth.
The internal team should hold ultimate and complete responsibility for the electronic commerce initiative, from the setting of objectives to the final implementation and operation of the site. The internal team decides which parts of the project to outsource, to whom those parts are outsourced, and what consultants or partners the company needs to hire for the project. Consultants, outsourcing providers, and partners can be extremely important early in the project because they often develop skills and expertise in new technologies before most information systems professionals.