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Outsourced Vs. In-house EDI: The benefits and drawbacks

One of the biggest decisions from a business standpoint is choosing between purchasing software for an in-house EDI implementation as opposed to going with an outsourced EDI service bureau. Below, we look at some of the benefits and drawbacks of both options:

Outsource

Benefits

One of the immediate benefits is the cost savings from identifying and eliminating bad business practices.

Access to the latest technology. When you use a SaaS model, the latest technology is available immediately.

There is a focus on the customer relationship and business rather than the technology itself

Drawbacks

There is an implementation fee

You will need to pay for any transaction, including changing information.

There is no way to know in advance how much time to purchase for mapping business functions and data.

No way to expedite the queue for transactions.

In-House

Benefits

Lower long-term costs as you only pay upfront and do not pay per transaction.

A much greater control of information, as data is not sent to a third party.

Greater business partner satisfaction

Drawbacks

The high initial capital expense for the software and any work to connect existing software.

Requires personnel with knowledge of EDI to manage the in-house systems and troubleshoot issues.

Regular maintenance costs and upgrades will incur separate costs.

Article by Act Data Services, Inc. 1-800-ACT-DATA. They are the premier EDI outsource experts and the best option to scale your business.