In 1995, a famous multi national company, Merril Lynch, decided to shop $10 minimally to fix the infrastructure of information technology to support about 25,000 companies that was connecting technologically to Merril Lynch Central Office. The lucky company that got “cake” as big as the amount was a company that has plunged into development of information and product technology, that is equal to Oracle, was Sybase Inc. In this situation, Merril Lynch management is more emphasized to its effectivity and efficiency of transformation technology process it had; in addition to increase customer loyalty by “embracing” famous company to deal with management of information technology infrastructure.

Lucky for Merril Lynch that having a budget to hand over its responsibility in developing the infrastructure to the party who considered capable and most competence. Development of hardware and software technology that is supported by mature IT experts, as occurred at this time, but it is believed capable of fulfilling some technical requirements which is proposed by a company, that almost entirely can be realized.

User that is also as developer of information technology infrastructure The opponent condition happens when a company or business organization has limitation on budget that is budgeted for infrastructure development; a simple question with difficult answer is often asked: why do not develop by yourself?

Selfsourcing or user (as technology user candidate) acts as information technology developer that is wanted by the company. In Independence context, they only will use it but prior to they also must develop the infrastructure. Limitation of budget is not the only reason why a company chooses selfsourcing in developing the infrastructure, the other reasons that support this phase are: security, implementation speed, and company management policy that more tend to improve employee’s competency.

Selfsourcing in developing information technology based system, which is not too different if the responsibility of development is done by outsourcing or turn-key project. The phase of development standard can refer to various standards that can be reference for the company.

Development cycle of information technology system in selfsourcing is illustrated as follows:

Figure 1. Development cycle of information technology system in selfsourcing

In generic, the phase of infrastructure development of information technology should accommodate these phases below:

§ Determine scope of project

Scoping phase is run to know the problem that is happened in working unit or a company. Objectivity and purpose and technical requirement are managed after the problem has found and also compared to existing condition and ideal condition. A project plan that contains a detail of ideal condition that they want to, system architecture design, estimation of development time allocation, budget that is provided for development activity, internal and external supports, which are needed and hoped can be mold in a document that is approved between company management and user that is, in this context, act as infrastructure developer.

Approval document of development scope will become reference in development activity, so this document is often called as Vision Scope Document.

Role of company management has a big contribution in determining the scope of project that will be run, this is related to authorization of company management to determine the policy of using company resource, company’s vision and mission, and responsible to the usage of company budget.

§ Make Analysis

Approval of project scope will be described in analysis of existing condition, ideal condition that is enclosed in managing the phases that will be passed in next implementation. Gap of existing and ideal condition will be eliminated through system development that is being planned.

System ability that will be built is defined in this phase. Development scenario that is managed by considering the target that will be achieved and also consider man days and budget that will be allocated to finish the project.

Process of existing business sometimes is re-analyzed to make sure that system that will be developed is relevant and accommodates internal of company and far from contra-productive with logical flow of operational management that has been established.

Selfsourcing method is more advanced to the independence in infrastructure development, in this case selfsourcing demands user (including this developer) to be more sensitive and smart to analyze the need, deliverable, and the phases that will be achieved.

The objective of analysis implementation is:

- Know technical and non-technical problem that must be solved through development of this information system.

- Define the scale of need and capability of technology utilization to fulfill business demand in user environment.

- Predict the ideal condition that want to be achieved with information system that will be built.

- Define value added due to information system establishment activity.

Analysis activity is also done as a risk that could be emerged in finishing the project and pasca-implementation (operational). Risk analysis includes technical and non-technical factors that are needed in doing information system development project. With defining the risk at the beginning of project, it is hoped to increase the cautious level for project manager and become quality control for project supervisor in evaluating project implementation.

§ Design the system

In selfsourcing methodology, user is owner of development idea, user also who defines the plan of need of information technology. Detail of development target will be created in a system design that will be established. Articulation of a need plan and system ability must be in detail to be technical system design that is accurately composes of the whole features and services that will be built. Even though selfsourcing gives priority to user as user candidate and system developer, but in its realization, both responsibilities is so hard to be done without interfering other parties to manage system design document. In its turn, user still needs system analyst, database administrator, network administrator and management consultant to manage detail document for the system. This method motivates user to be more dominant in explaining explicitly to other party not involved in developing this project (this is opposite with outsourcing method).

This document of detail design is hoped fulfilled these following things such as:

- Architecture and data flow of system that will be developed (can be Data Flow Diagram, Flow chart, pseudo code, Logical design and etc)

- Database design that is used in the system

- Interface design (such as: login page preference design, system preference, file help layout, list menu, visualization of real system that will be built, and etc).

- Feature list and interoperability of one module/ sub module that builds the system

- Deployment scenario that contains integration scenario among module/sub modules, system that is already developed with existing system, so the way to install the system in new working area.

Document of information technology infrastructure design that is resulted should have characteristics as follow:

- Technological independence

Not depending on a technology platform, a solution is relatively easier to be realized, and in some conditions, system design with technological independence is relatively cheaper to be implemented and more realistic to be started.

- Reduced complexity

Process to know technical and non-technical problem has been done in analysis phase, design activity is hoped able to explain uncertain node in technology system that want to be built. Design document becomes instructor for system developer to develop feature and system ability that can be a solution for user need.

- Focus on structure

Design activity shall be began from definition process of the smallest part ability of a system to the whole system (for instance; per thread (sub process), process, modul, sub system to system)

Design activity also hoped to be able to give detail description about working system of each and interoperability with other parts to make a complete system performance.

Selfsourcing does not abandon prototyping method in design activity, which is doing. In several development cases, prototyping even becomes an implicit requirement before final system is implemented to intranet of the company or operated in live. Prototyping in design activity can be done by developing system miniature in closed network (such as in laboratory), or via empirical calculation process by trying some variables to parameters in a system of simulation equipment, that is a software.

Any Prototyping is believed that will be able to give description that closed to real system that will be developed, and it is possible through prototyping will gain experience of user that is in this condition acts as system developer. Real sample of this condition is to give description for system developer that estimation of logical flow has detriment and superiority, and this is also proved that estimation of software and hardware has been able to result system performance as it is hoped.

§ Realize Implementation

Realize project implementation is done to implementation phase. The last result of implementation phase is final system (or often called with completed system) that literally is information system with a complete ability and production defect that has been minimized. In some references of software development methodology limit the implementation phase by entering coding process (programming), testing and installation to be a part of this phase. Some other references add user education and promoting process that becomes a part of this phase. Whatever the limitation is, author has an understanding that implementation phase has a relationship to the whole process that is mentioned above, and the result of last limitation of the implementation phase is the project output that is readily to be operated. Back to selfsourcing, a short question comes up: Is user education and promoting still needed to be run – and the answer is yes, due to system socialization to users, nevertheless, is need to be done, this is related to user customization of information technology that is just developed.

The output of implementation phase strives for being a mature system that having flexibility, interoperability, and high performance. How to prove that information technology system that is developed has complied with the criterion? One way is by using it!

In company environment that insists accuracy system in first-rate (such as: banking, hospital, telecommunication company, and data management institute), the proof of system preparation to be more complex and considers more aspects before the system is ready to be operated.

The involvement of other party to prove flexibility, interoperability and performance in some developing system cases is really needed. Some experts in that sector are expertise in specific technical things that is requisite in testing third party above. It is their competence to be able to provide technical solution of humble and obstacle that is faced by system developer.

If necessary, system developer that is also as user candidate insisted to be more open to the selected partner in testing those three aspects. Parallel process with running the process of existing parallel that operates new system during a period of time – it is hoped to give authentic evidence that how far is three aspects: flexibility, interoperability, and performance, realized. And one thing about this selfsourcing, user sensitivity level in finding system weakness that is developed is decreased; the reason is because of user logic is same with system developer.

§ Run Function of Support

Information system that is desired has been “installed”, Is everything done? Infrastructure of information technology requires accurate maintenance and control. Learning system, that is the expression, is to describe a system that always growing up as well as its utilization in daily company’s operational activity. It is possible that more often the infrastructure of the system used, user demand on the system also changes (or increases). Support function is necessary in operating new system, it is meant to handle technical and non-technical need such as bug finding, help desk, administering, security and audit, patching, or upgrade.

Though it is developed refers to selfsourcing method, but choosing one who will act as help desk and as technical assistance still considered as well.

Positive side of Selfsourcing

Positive side of selfsourcing can be understood by considering the aspects that influence development phase from the activity of determining scope of project until running the function of support.

§ Requirement can be understood clearly

Selfsourcing advanced user role that is to determine the objective and target of infrastructure information system development. Knowledge and expertise that is in user mind becomes easier to be articulated into development phases. Gap of information system detriment can be minimized with assumption that user as system developer knows the core of problem that is going on so far. User that consists of working group that has a resemble expectation to system that will be built, various desires of user often enrich system treasure that will be developed and this condition precisely encourages to emerge the system that is rock solid and applicative. With expectation that is relatively same, a group of user is hoped can run control function of information system that has been developed by comparing between result and expectation that is available in user mind.

§ Increase participation and belonging sense to developed infrastructure

Information system that is developed from basic problem in grass root tends to be an eternal and applicative system. Besides user as system developer is also proud, user is more “care” and “tolerant” toward system performance. The emerging of user belonging sense will increase appreciation and caution level in maintaining and operating information system.

§ Relatively fasten development phase

Reduction time occurs with selfsourcing mechanism that is needed to hand over responsibility of development to other party. Time reduction and effort can be felt from definition phase of project scope to last phase of technology development in selfsourcing. In some cases, in which user has understood methodology of phasing (versioning) of system development, development cycle can be designed shortly with versioning (developing system version) in gaining ability of system.

§ Cost cutting

If information system is developed selfsourcing by user, is the cost still needed? Development cost is still needed, but it is allocated for mandays; in selfsourcing, this budget can be utilized for other budget post. You can imagine reduction that can be done if development project is executed in outsourcing or turnkey project, especially for a big scale project.

Documentation is an implicit factor in next development

If the purpose of developing information system is to be developed in the future, so one thing that cannot be forgot is documentation of development phase. It is true that development idea of selfsourcing is on user mind at the time, but documentation in development phases become implicit factor, which cannot be forgot.

Documentation activity is become a part of each developing phase of information system, and in the last of project implementation, collection of notes that is gathered when developing becomes important to be united.

Project note is as reference for next development cycle, then also as guidance for information system developer.

Selfsourcing: Yes or No

Simple question about selfsourcing and a very situational answer becomes compliment of this explanation. A good side from development methodology of information system in selfsourcing is as the followings:

§ Lower the cost of owning technology

Utilization of internal human resource in development activity is believed able to low the cost if it is done by outsourcing and turn key project. In selfsourcing scenario, mandays component can be negation, because development process can be executed in self-supporting. The phase of implementation can be adjusted with user’s preparation and also the budget and commitment of company management itself.

§ Improve reaction of unplanned events

The emergence of new requirement is possible done during the implementation process. Response of requirement change needs user’s participation and development of existing information system, selfsourcing method enables a quick response of the requirement change. For each minor change, it could be done an instant, and for major change that needs reengineering process, in which its engineering cycle will be faster to be realized.

§ Create scalable and reliable technology solutions

User that has development idea is user that understands real problem in his working unit area, and he also determines the option of technology that is considered able to answer a demand that is being faced. From user real demand, tendency that always happens is a solution, which is deeply rooted to technical problem in field.

§ Improve information technology competencies

User competency is getting acute with collision of developing information system. User is getting sensitive in catching a demand of his working unit, and user also has more experienced in defining the perfect solution for its need.

However, it does not mean that system development of information technology in selfsourcing is far from risk and obstacle. Some risks and obstacles that humble with methodology of information system development in selfsourcing such as:

§ The lack of user understanding in development phases, produce a system that does not quite fulfill formerly specification or have a distortion in its implementation

§ Selfsourcing is a sector initiative of working unit in company environment, collaboration, and communication that is not transparent between system developer and information technology infrastructure that will cause the system isolated due to it cannot be integrated with existing system.

§ The effort of documentation and external support is minimum (either information infrastructure manager or other unit), poses information system that is developed “short age”

Finally the option to determine selfsourcing or not, must consider some aspects and factors above. Due to information system, which is developed, is a part of company investment, so it needs a smart consideration in its implementation.

Sony Ari Yuniarto, author is engineer in Information Technology and Solution Laboratory at TELKOM RisTI (R&D Center). He had some experiences in developing software since 1996 until now, especially web-based software. The solutions that ever been developed by author are: Human Resource Management, registrasi online, e-commerce, e-Government, dan juga budget planning & control system.