Build or Buy: Strategic dilemma in IT

Whenever an organization needs a software solution, the decision to build or buy that solution is very vital to solving the problem at hand and shouldn’t be taken lightly. However, there’s a coherent and reliable way to arrive at the right choice.
It’s all about paying attention to the cost of each option, the risk involved and the nature of the problem you’re trying to solve.

Evaluate the cost

With building, you’ll be paying for the labor, infrastructure needed in developing the solution, and any subsequent maintenance. If you go the buying route, you’ll be paying for licensing. Make sure you go for simple and transparent licensing agreements like the per-user or per server license.
This will help you avoid drastic increases in fees owed due to exorbitant pricing structures. There are also programs supporting the pooling of licenses that can be rotated amongst different users. But while the building may sound appealing, it can be complicated trying to keep a project on track and delays can increase costs.

Ascertain the risks

This is the part where you think about the security of customer data and other resources, the availability of your service amidst downtime on the provider’s end, bugs, and more. When you opt to buy, you may not have enough control over the system. Support teams may respond slower to your requests.
Those who decide to build may enjoy more control over their software, but there’s always the risk of failing to deliver the complete solution on time. It could also turn out not to be easy to integrate with other complementary solutions common in your industry.

Consider the problem

If you’re trying to solve a secondary problem, like something administrative or to do with internal communication and collaboration, it’s better to buy the solution. On the contrary, if the problem you’re trying to solve is integral to your value proposition, it makes sense to build the solution in-house.
All in all, selecting the right approach is key to ensuring consistent revenue. It helps to have a solution that can turn your internal data (costs, project duration, etc.) and external data on how these two options perform in your market into actionable intelligence. The insight can help you refine pricing and more. 
If you’re considering such a solution, request a demo of GoalProfit and learn how it can be of help to your organization.