I really try to avoid industry jargon in this blog, as well as in conversations with clients. But I catch myself, from time to time, especially when discussing how to build a web business, using terms and phrases that roll off my tongue, but that actually warrant further explanation. Near the top of that list is the “build vs. buy” dilemma (aka: “buy vs. build”). I had been using that phrase for so long, I started to assume it was self explanatory. But you know what they say about the word ‘assume,’ right? So, here I hope to clarify a little.
The bottom line is that building any technology solution (whether it be all or part of your business website) from scratch is likely to cost more than it would cost to customize a commercial off the shelf (COTS) software package that meets even 75% of your requirements (assuming you can customize that package to meet the remaining 25%). In other words, it’s in your best interest to see if there are some other websites or software packages that are already doing *most* of what you want to do - and if so, see if you can use those solutions as-is, or with some minor customization. In that case, “buy” may be the better option (meaning you buy the packaged software, rather than building from scratch).
There is, of course another side of the coin (which is why this is a dilemma) where your business’ stakeholders might argue that the cost of customizing the off-the-shelf package to meet the remaining 25% of your requirements may actually exceed the cost of building from scratch. Or possibly (very likely) the off-the-shelf system isn’t customizable enough to meet 100% of your requirements. In that case, “build” may be the better option (meaning you build the software from scratch, rather than buying a packaged solution).
The decision is sometimes a difficult one - the grey area between the two extremes can be tough to navigate. For small businesses, however, the “buy” option is often more appealing because (a) small business internal processes can be more flexible, and can mold a bit to match the software solution; (b) small businesses are generally cost sensitive, and the cost of building from scratch can often be greater; (c) small business often do not have the resources to maintain a from-scratch system.
This “build vs. buy” decision is a part of every one of our development projects. We typically evaluate a number of options on both sides of the table before moving forward - to make sure the solution chosen fits the client’s budget, timeline, and functionality requirement constraints. If you’re going to handle a project in-house, it’s worth closely evaluating both options.
More Info on the Build vs. Buy Dilemma
Fortunately others have written volumes on this subject. Depending on your need, you may find some of these resources useful:
TechRepublic.com:
- Consider These Points When Making the Build vs. Buy Decision (link)
- Six Steps to Making the Right Decision (link)
BaselineMag.com:
- Buy vs. Build Software Applications: The Eternal Dilemma (link)
IT.ToolBox.com:
Dovico.com:
- Sample Build vs. Buy Case Study for Dovico Time Management Software (link)
Loading ...
November 11th, 2008 at 5:00 pm
[...] you should consider buying a packaged solution. This is a common conundrum known as “build vs. buy” - with well documented advantages and disadvantages on each side. But with so many [...]