Dvsf Case (Outsourcing Analysis)

The dynamic change in recent information engineering has changed the industry structure, consumer values, and companies strategies. One of these changes exists in the blood with the ternary companionship partners, outsource providers. While the companies tooshie enjoy some advantages with these third party service providers, there are some risks that these companies reach to consider and manage. Third party provider even changes the relationship between companies and structure of the industry. In this paper I leave discuss these advantages and risks based on the Delaware Valley Financial advantage (DVSF) case study.

Outsourcing advantages
DVFS, a third party provider can provide the fol slumping advantage.

1. Economy of scale
DVSF can afford the low equal work gathering form the similar services within the insurance industry. Managing over $4 billion in assets of self-directed annuities, DVSF can provide comprehensive services at the reasonable costs. DVSF believes that it owes its success to the economic advantage that its customers attain from traffic with a third-party services with a larger portfolio base (p.4).

2. expertise and integrity of the services
By specializing and focusing to the few specific note and processes, DVSF can offer the expertise and integrity of the services.



In fact, DVSF has a high degree of expertise in reliable software product and in operation of fault-tolerant database systems. DVSF says, how complicated could it be to develop the software? We had our first customer, and it needed our expertise and had no where to go (p.2)

3. tractability and rapidness
The third party provider can offer tensile and differentiated services which may be difficult to achieve by the companies. DVSF was successful because they enabled the quick new-made service foundation which customer requested.

4. Unknown to known cost
DVSF can offer new market entry at a known cost as well as existing customer service. other example is that Merril Lynch...If you want to get a full essay, swan it on our website: Orderessay



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