Make or Buy Decision

This process helps in deciding the best options for onboarding new software.

Workflow Steps

Step 1 - Define Business & Technical Requirements

A cross-functional team clearly defines the business problem to be solved and documents the detailed functional and non-functional requirements for the solution.

Step 2 - Analyze "Buy" Option

Research and evaluate available third-party software solutions. This includes vendor demos, cost analysis (licensing, implementation), and checking references.

Step 3 - Analyze "Make" Option

The engineering team estimates the cost, resources, and timeline required to build and maintain the solution in-house, including development, infrastructure, and ongoing support costs.

Step 4 - Compare Options & Make Recommendation

The team compares the two options based on a variety of factors (total cost of ownership, time to market, strategic control, scalability) and makes a final, data-driven recommendation to leadership.

The Purpose of Make or Buy Decision

This workflow provides a structured framework for making a strategic "make versus buy" decision, typically for a new software solution. It forces the team to objectively evaluate the costs, benefits, and risks of both options: building a solution in-house versus buying a third-party tool. This leads to a more strategic and financially sound decision that aligns with the company's long-term technology and business strategy.