Make or Buy Decisions Are Sometimes Overruled for "Strategic Reasons"

User applications, helpdesk operations and the sales channels will be the most visible subsystems to customers.
A thorny strategic risk resides in the outsourcing of distribution to website hosting services provider.
They hold the gateway to customers, can learn what they value and know enough of web services to bypass YPSYS once their PKI user base is built. Still, they are critical to YPSYS rapid expansion since VeriSign has demonstrated that PKI is ideally suited for a bundling with web hosting. There may be a case here for co-equity ownership or similar strategic considerations.
Finally, competitive knowledge, critical to current and future performance, is built in the helpdesk operations, the user applications and the distribution channels.
YPSYS being a start-up company is poised to rely on outsourcing to maximize flexibility and leverage reputations. However, YPSYS is advised to make sure it keeps striving for leadership in helpdesk operations, user applications and actuarial expertise.
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