Buying Software and Hardware to enable and in-house application versus outsourcing the application should come down to a solid business case that includes quantitative analysis in the form camisetas fox baratas of a cost benefit analysis if outsourcing the applications needs,?versus using?ROI if buying a premise solution.???
When purchasing software and hardware, the cost of capital formula's of?NPV or IRR should be used to determine the true cost of the ROI.? Often times in my experience,??the decision?comes down to the company philosophy of building versus buying.?? The?buying companies believe in focusing on their core competency and reducing cost and thus?outsourcing all non-core functions.? The building companies seem to focus on maintaining control.?
The following list should be considered if your company is?considering a OCR related document management solution for the?automating of?manual data entry of paper; and is?comparing?an in-house solution?versus outsourcing this need.
- Inbound forms- paper or digital?? If paper, they need to be digitized by using a fax service or scanners.? If digital, are images skewed or of poor quality? OCR software does not read poor image quality or low dpi images very well; the image will need to be enhanced for an accurate read, so this requires another software package.? What kinds of forms are being received?? Structured or unstructured.? OCR software alone is not very accurate with unstructured forms.? Will the software vendor give a guarantee for the accuracy claims?? How will you handle false positives?? What accuracy rate is required to guarantee a reduction in FTE’s for the data entry task, this is an important component of your business case.? In other words, labor can be both a fixed and a variable cost.? How will this apply to your data entry operations scheduling?? What is the lifespan of the hardware and software before it is obsolescent for your IRR formula?? We see
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