Identify FIVE main advantages of keeping an in-house IS function.
There are several significant advantages of maintaining an in-house IS function, five are listed below.
HR flexibility
If the service is kept in-house there will be potential to use the posts within the function as part of human resource management policies like as career development across different business areas and job rotation.
Sharing of overheads If the service is kept in-house there will be sharing of central overheads by the IS function. If the service is contracted out then other services like as payroll and headquarters functions would be relatively more expensive to service users.
Local knowledge
As part of the similar organisation, the function should possess unique local knowledge; meaning that it understands local complexities and needs better and is well placed to tailor the service to those requirements.
Commitment to the organisation
As part of the organisation the in-house provision should be mindful of the organisational culture and ethos and have a better affinity for and commitment to the organisation.
Avoids complex SLAs and transaction costs
Potentially there should be less complexity in agreeing and managing a 'service level agreement' (SLA) between the IS function and service users than if an outside contractor were included.