Glossary · Strategy & delivery
Make-or-buy
The choice between having something custom-built and buying an existing package.
Make-or-buy is the choice between having something custom-built and buying an existing package. Both have their place. An off-the-shelf package is usually quicker and cheaper to acquire, while custom software fits exactly the way your business works.
The rule of thumb is to buy what is ordinary and only have built what truly sets you apart. Excellent packages exist for accounting or inventory management, and having something like that built is rarely worth the effort. For the one process that makes you unique, custom work can actually pay off.
Do not weigh the purchase price alone. Custom software also has to be maintained and adapted later, whereas with a package you depend on the vendor. Both choices carry costs that only become visible over time.
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