Many companies and governmental organizations are choosing to outsource the administration of their Information Technology (IT) departments. When it comes to the process manufacturing software system piece of a manufacturing company’s infrastructure, procurement and purchasing personnel have to be completely head’s up to additional considerations in making these purchases and administering agreements.

Manufacturing Software

Process Manufacturing Software in an Outsourced Administrative Environment

As this practice increases in popularity, procurement of software and hardware often falls to the outsourcer, as well. At least one additional layer is added to the IT administration onion; procurement of hardware, software, including process manufacturing software and maintenance by third party administrator.
Some considerations:
1.    Software and hardware licensing provisions that prohibit the outsourcer from making such purchases on their client’s behalf.
2.    Outsourcers sometimes offer to “carry” their clients on their own system.
3.    Maintenance and security certificate administration can be tied to hardware ownership and original purchase.
4.    The outsourcer must be a formally designated agent for the client in order to make such purchases and adjustments.
5.    Pre-existing agreement renewal schedules.

Process manufacturing software licensing issues are often affected by a number of factors. Being intimately familiar with the terms of existing agreements and budgeting for stopgap measures to prevent production halts is critical. The five items listed above can affect the client and the outsourcer in the following ways.

Written by :

Amy Cruz