382 Part III • Acquiring Information Systems
provider might have more disciplined processes than
the client organization, which can lead to higher
quality solutions.
Create a centralized project management officeA
PMO is a center of excellence for managing proj-
ects; a specialized unit of the PMO can concen-
trate on managing offshore projects, which can
become very inefficient due to risks mentioned
earlier.
Begin with pilot projectsSmall pilot projects will
test working relationships, build trust, and develop
experience for the more important projects later.
Hire offshore legal expertiseSpecialized legal con-
sultants can assist in writing contracts to manage tax
implications, protect intellectual property, address
differences in legal systems and regulations, handle
visa issues for workers who have to travel between
your organization and the contractor, define precise
deliverables and terms (often called service level
agreements), and assist in resolving disputes.
Use secure and redundant communication linksSuch
communication links help to insure sensitive documen-
tation that must be shared between your organization
and the contractors arrive and are protected from theft.Supporting User Application Development (UAD)
After IBM Corp. introduced its first microcomputer (called
the “personal computer” or PC) in late 1981, microcom-
puters begin to appear on the desktops of business man-
agers and analysts. Many of these PCs were purchased by
business managers using office equipment budgets without
the knowledge or support of the IS department. Until there
was a “call for help” from a computer user or business
manager, the IS department may not have even known
what hardware and software was in use in the business.
By the early 1990s, when local area networks that
enabled the sharing of microcomputer resources (including
printers and data) began to be installed in organizations, IS
managers began to implement less reactive approaches to
supporting microcomputer users. The use of desktop com-
puters also became more widespread due to the rise in
computer literacy among entry-level employees who had
learned PC (or Mac) applications as part of their college
programs. Computer-literate business managers recog-
nized that small spreadsheets and database applications, as
well as reports with graphics, could usually be more quick-
ly developed by their own workers. This meant that the
business manager didn’t have to fill out a formal project
request for an application to be developed by IS staff,
which would typically take much longer or possibly not be
approved for IS resources at all.
Today, the overall challenge in managing user applica-
tion development is to find the best ways to maximize the
potential benefits of application development by users without
creating unacceptable levels of risks to the organization for
using applications developed by minimally trained users.Advantages and Disadvantages of User-
Developed Applications
Understanding the potential advantages and disadvantages
of user-developed applications is critical for making good
choices about whether a new application should be user-
developed or IS-developed (i.e., internally, externally, or
purchased). More than 25 years ago, the prolific IT guru
James Martin shocked many IT professionals by advocat-
ing that organizations invest in software products for users
to develop their own applications:The continuing drop in cost of computers has
now passed the point at which computers have
become cheaper than people.—JAMES MARTIN, Application Development
without Programmers, 1982
The main advantages to UAD are due to users (1) not
having to explain their information requirements to an
analyst who is not familiar with the business context and
(2) not having to wait for IS resources to be assigned to
work on their project. Rather, the business manager can
determine when his own workers should spend time on
using computer tools to develop a new application. This
can often result in a more timely response to a specific
information need. Business managers also gain total
control over the development costs: There are no cost
chargebacks from an internal IS department or contractual
obligations with an outside vendor if the manager’s own
employees can develop the application. User application
development (UAD) can also be a clear advantage when
internal IS resources are relatively scarce: In this situation,
it may be best for an organization to use its IS resources to
work on projects that require more sophisticated, special-
ized IT skillsets or for applications that serve multiple user
departments.
However, organizations also need to recognize the
potential downsides to applications developed by non-IS
specialists: (1) lack of application controls for security and
data quality, (2) loss of opportunities for IT and business
integration, and (3) increased operational risks due to
developer turnover. Let’s address each of these downside
in more depth.