Build vs. Buy: Concentrate on Costs

Author(s): Nauman Haque

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Small enterprises that have access to software development resources often struggle with the question of how to acquire new software – should they try to find an appropriate commercial package, or should they build it themselves? This research note facilitates that decision by addressing the following areas:

  • Strategic overview. A summary of building and buying and their prevalence in the enterprise world.
  • Pros and cons. A comparison of the advantages and disadvantages of each adoption approach.
  • Cost breakdown. A framework for conducting a comparative total cost of ownership analysis.
  • Requirement considerations. A set of assessment criteria to be applied when evaluating the requirements of the planned solution.

Collectively, the above components will help IT and business decision makers conduct an objective and balanced analysis of the situation to find the right strategy for the enterprise.

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