User-Supplier Alignment Can Cut Software Costs

Software costs have been increasing, both as a percentage of the total data processing budget and in absolute terms. Careful planning and an understanding of the reasons for high costs can provide management the controls to bring these costs down significantly. A fundamental divergence in objectives...

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Bibliographic Details
Published in:Computerworld 1982-09, Vol.16 (37), p.32-32
Main Author: Sethi, Neerja
Format: Magazinearticle
Language:English
Subjects:
Cost control
Cost reduction
Costs
Software
Suppliers
Vendors
Online Access:Get full text
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Summary:Software costs have been increasing, both as a percentage of the total data processing budget and in absolute terms. Careful planning and an understanding of the reasons for high costs can provide management the controls to bring these costs down significantly. A fundamental divergence in objectives often exists between user and supplier, and this is clearly evident in the commonly used modes of software installation: contract programming, in-house development, customized packaged software, and end-user computing. The key to holding down costs lies in resolving goal conflicts through alignment of the goals of the installing party with that of management. Management should focus on its main line of business and transfer the risk of any major development or enhancement attempt to professional organizations that are in the business of supplying software.
ISSN:0010-4841