What development costs among several companies. Despite the obvious

What mode of e-business procurement should be chosen?

The procurement model that a company selects needs to
complement the strategic importance of the project and the in-house
availability of resources to develop such solutions. four different procurement
models:

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·     
partnership,

·     
preservation,

·     
outsourcing and

·     
recovery,

 

 

 

Partnership

Businesses that enter into partnerships generally seek a
partner (consultant or service provider) who can supply the expertise they lack
to develop the new information system. However, most SMEs prefer to hire
freelance programmers, because a partnership arrangement with a consulting firm
is often expensive and time-consuming.

 

Preservation

In the preservation model of procurement, the e-business
system is developed entirely in-house. This model is usually adopted by
businesses that have the internal skills to carry out the e-business project on
their own. In addition, firms that select this model generally place a high
strategic value on the project.

 

Outsourcing

When the strategic value and expertise of in-house resources
are low, outsourcing is a logical solution. This was the case for Polar Plastic
and GLP Hi-Tech, who contracted out their e-business development to external
consultants.

 

Recovery

In the recovery procurement model, there are two approaches
that can be followed: The first is to share development costs among several
companies. Despite the obvious economic benefit of this approach. The second
approach is to market the application developed by the company,