E-commerce

Third party software or applications are programs written to work within operating systems written by individuals different from the providers of operating system such as Apache web Server and Tomcat Servlet engine. Users of third party software can modify, run, study and redistribute without payment of license fee. The use of third party software has increased in the area of information technology and financial provisions such as e-business technology.

Risks associated with the use of third party software include legal, strategic and operational. Legal risks associated with the use of third party software are licensing, infringement, warranties and indemnification (Jackson, Harris, 2003, p.12). The users of third party software are supposed to consult counsel with thorough knowledge in copyright and patent law. This is the solution to legal risks as is associated with third party software (Matthewson, 2002, p.19). 

Strategic risks are another problem that is associated with the use of third party software. Common risks in this aspect include code customisation, forking, product maturity, total cost of ownership and system integration. Solution to this problem by institutions is to develop software that is driven by strategic business objectives. 

Another risk associated with third party software is operational risks which include sufficiency of documentation, code integrity, contingency planning, and support. The solution to operational risks in an institution practicing e-business is to only participate in formal trade groups, verified government and business oriented user communities other than generic accessible public online forums (Noel, 2002, p.71). 

The use of third party software in e-business does not only pose risks different from those presented by self-developed software. The users of the free software are supposed to be familiar with management practices that help to solve problems associated with such risks.