Performance Appraisal Software: Build It or Buy It?

WhitePaper:
Performance Appraisal Software:
Build vs. Buy?
T 613 270-1011 F 613 270-8311495 March Road, Suite 500, Ottawa ON K2K 3G1
© 2006 Halogen Software. All rights reserved.White Paper: Performance Appraisal Software : Build vs. Buy?
Introduction
Successful organizations recognize that decisions should be based on ROI. Why should decisions about the implemen-tation of a corporate performance system be held in any less regard?
Not all organizations are alike. What's right for your organization will depend on several factors, including the current business climate, availability of organizational and individual resources, as well as perceived bene?ts to the organiza-tion as a whole. Often, long-term consequences of building software systems internally are overlooked in light of short-term goals and super?cial cost-saving measures.
Organizations have come to view performance appraisal systems as necessary. Online employee performance apprais-als provide a fast, interactive way to conduct appraisals on the largest investment your organization makes - your employees. Web-based employee performance appraisals reduce the administrative burden of conducting employee reviews.
Build versus buy? This white paper was written to provide your organization with cursory yet critical information to make an informed decision about building versus buying a performance management system by outlining some of the actual and overlooked costs involved.
Actual Costs
First, we consider actual costs associated with buying versus building an employee performance appraisal system.
Costs Associated with Implementing Costs Associated with Building Halogen eAppraisal a System In-House
$18,500 for 1,000 user licenses -Analysis to de?ne requirements- Project Managers to develop speci?cations$4,070/year for maintenance, support - Developersand upgrades - QA Testers- Documentation Specialists- Involvement of internal staff who will use the software- Purchase of new hardware, software and licensing for above personnel- Support for one year- Maintenance for one year- Development of upgrades- Business opportunities lost due to focus on software development versus corbusiness practices.
Total Cost to Buy: $25,570 Total Cost to Build: $652,600+
Keep in mind that these costs are for the development of an e-appraisal solution designed to meet only an organization's basic needs. These costs do not include the additional time and required resources for the planning and development of specialized features that may be requested by the organization.
Furthermore, the aforementioned costs represent only a partial list of hard costs and are based on the assumption that you will have access to the necessary in-house talent, however, it is likely that you will need to locate and retain contract workers, thus incurring additional costs.
2006 Halogen Software. All rights reserved. 2White Paper: Performance Appraisal Software : Build vs. Buy?
Further exploration of both hard and soft costs for consideration in a build versus buy decision are outlined in the following table:
Requirements Halogen Software's SolutionInternal Staff
Organizations are often tempted to second skilled Halogen Software staff have worked with a cross-section internal staff to build critical systems in an effort to cut of people across organizations in various industries to costs. In order to proceed with development of a full- develop best practices. The Halogen eAppraisal software scale employee appraisal software solution, members solution was built to meet the speci?c needs of various from all areas and all levels of the organization must areas of business within various industries. Common be consulted in order to accurately identify expected deliverables, pitfalls and reporting needs have requirements and expectations. Extended been identi?ed and analyzed. What's more, the software involvement by internal staff in such an endeavor can be customized to ?r your organization's unique need diverts focus from core day-to-day business, affecting and requirements at any time.the company's bottom line.
Technical Expertise
Software development is not a strength possessed by Halogen Software's technical teams have spent years all organizations. Development of an effectual focused solely on the development of its u... [download for more]