Answer: There are several concerns that need to be addressed when one of the methods of implementation is contracting for software development. These review concerns are:
Control specification- The controls desired in the application should be specified in enough detail during the feasibility study so that the individual negotiating for an application can include those control specifications in the contract negotiation.
Needed installation date- The date on which the application is to go into production should be specified. Many applications lose a large portion of their benefits if the application is not installed when needed. For example, an application designed to provide special promotions for Christmas shopping would be of little value if it is not completed in time for Christmas purchasing. Specifying this date may indicate whether an application needs to be purchased, or whether it can be developed in-house.
Value of applications- The benefits to be obtained from an application should be specified. These are the benefits above and beyond what is currently being obtained from the existing method of performing the tasks. The benefits need to be quantified. For example, benefits like improved customer service are of limited aid in making business decisions on installing or purchasing new applications. The objective of having a stated dollar value.
Useful life- The expected life of the application should be stated. For example, if it is expected that the requirements and technology needed will satisfy the needs of the organization for an eight-year period, that should be stated. Where it is difficult to estimate a specific useful life, a range such as 5-10 years is often sufficient.
Confidentiality of application- Feasibility studies should state the confidentiality of the application to the organization. This importance would deal with the need to keep the processing rules confidential. For example, the application may include the formula used in creating products for production. Since the application contains those formulas, it contains the trade secrets of the organization, which must be adequately protected.