An application software package is a set of prewritten, pre-coded application software
programmes that is commercially available for sale or lease. Packages range from
very simple programs to very large and complex systems encompassing hundreds of
programmes.
Packages are normally used for one of the following three reasons:
• Where functions are common to many companies. For example, payroll
systems
• typically perform the same functions for most companies.
• Where data processing resources for in-house development are in short
supply.
• When desktop microcomputer applications are being developed for end users.
This approach is often followed because so many application packages have been
developed for microcomputers.
Advantages of packages are:
• Design: The vendor has already established most of the design which may
easily
• consume up to 50 percent of development time.
• Testing: Programmes are pre-tested, cutting down testing time and technical
problems.
• Installation: The vendor often installs or assists in the installation of the
package.
• Maintenance and support: Periodic enhancement or updates are supplied by
the vendor.
• Vendors also maintain a permanent support staff well versed in the package,
reducing the need for individual organisations to maintain such expertise in-
house.
• Documentation: The vendor supplies documentation.
Disadvantages of packages:
• There are high conversion costs for systems that are sophisticated and already
automated.
• Packages may require extensive customization or reprogramming if they can’t
easily meet unique requirements. This can inflate development costs.
• A system may not be able to perform many functions well in one package
alone. For example, a human resources system may have a good
compensation module but very little capacity for manpower planning or benefits
administration.
• Impact if the vendor no longer supports/supplies the package. In case the
vendor no longer supports or supplies the package, a firm maybe negatively