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Licensing vs Outsourcing

Before selecting a solution, you should first evaluate whether licensing or outsourcing will best suit your needs. With licensing, all software is installed on your in-house computers, and you are responsible for both the software and the machines that it runs on. With outsourcing, the software is run by the company providing the service, often called an ASP, which takes care of the server and software. The service is then accessed via the Internet using a Web browser.

With licensing, you only pay the cost of the license and an optional fee for technical support. With outsourcing, you normally pay an initial setup fee, an annual service fee as well as delivery charges based on how many email messages you send.

Advantages of Licensing

Disadvantages of Licensing

Most cost-effective in the long run

Higher upfront costs

Full control over your operations

Installation, setup, tuning required

No per-delivery costs

Personnel costs to maintain software, hardware

Advantages of Outsourcing

Disadvantages of Outsourcing

Lower upfront costs

Less cost-effective in the long run

No installation and setup required

Less control over your operations

No personnel costs to maintain hardware and software

Per-delivery costs

Licensing and outsourcing both have their respective advantages and disadvantages. The best option depends entirely on your circumstances. There is no right answer that applies to everyone. This is why L-Soft offers both licensing and outsourcing. There will never be any conflicts of interest or migration problems if you later on decide to move from an outsourcing service to a licensed solution. It is actually common for smaller organizations with limited resources to start with outsourcing and later move the operations in-house.

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