What could be the potential reasons for this decision? Justify your answer with at least two valid reasons.

A multinational company has signed a contract with a renowned software house to scrap and re-design their software system. Although the current software system is already of high quality and is working absolutely fine.

What could be the potential reasons for this decision? Justify your answer with at least two valid reasons.

Answer:

1. Business and technology advancements: The company's business may have evolved and grown, requiring new features or capabilities that the current software system is not able to provide. Additionally, new technologies may have become available that can improve the efficiency and effectiveness of the software system. By re-designing the software system, the company can take advantage of these new advancements and stay competitive in its industry.

2. Scalability issues: As the company grows, so do the number of users and amount of data that the software system needs to handle. The current software system may have scalability issues that limit the company's growth and ability to handle this increased workload. By re-designing the software system, the company can ensure that it can handle the increased workload and continue to grow without hindrance.

3. Security concerns: The company may have become aware of security vulnerabilities in the current software system that could put the company's sensitive data at risk. By re-designing the software system, the company can address these vulnerabilities and ensure that its data is protected against potential cyber threats.

4. Maintaining and updating the current software system: The company may be facing challenges in maintaining and updating the current software system. The current system may be built on outdated technology and may be difficult to update and maintain. Re-designing the software system will allow the company to build a more modern system that is easier to maintain and update.

5. Meeting the changing market needs: The software market is a fast-paced and ever-changing landscape, and the company may have realized that its current software system is not meeting the changing market needs. Thus, the company may have decided to re-design the software system to keep up with the current market trends, and customer preferences, and to stay competitive.