CENTRALISED DATA PROCESSING SYSTEM

With the increasing use of computer based data processing, there has been a growing tendency in the minds of management to centralize the data processing activities. A separate department EDP (Electronic Data Processing) department is established to carry out the data processing work of different departments in the organization. Many times the data processing is also done by hiring the services of the outside agencies and with the passage of time and experience in-house set is developed for data-processing.

• The centralized data processing system provides the following
• benefits:
• The emergence of data takes place only at one place.
•  The loss of data is minimized.
•  The methods and machines can be standardized.
•  Services of more competent and technical personnel can be
• taken.
•  It is also very cost-effective particularly in the case of large
• operations.
•  Duplication of work can be avoided.
• The disadvantages, however, are:
•  Lack of cooperation from managers, who do not like to be under
• control of centralized Data Processing department.
• Resistance from managers for mechanization of the data processing activities relating to their various functions
• It is difficult to provide equitable services to various departments.
• The data security is also questioned.