Cost Efficiency of Web Systems in Municipal Governments of Japan

Targeting local e-governments of Japan, this study examines whether the web system can reduce information system cost or not, namely provide cost efficiency. First, in this study, we analyzed the relationships between the cost efficiency of web systems and the software development approach. By doing so, we demonstrated that a web system and non-customized package is common in the easy structuring of information systems and easy maintenance. By using multi-level models, we clarified that the cost reduction effect of web systems was significant in services where non-customized packaged software is frequently used.