Back when I was a corporate IT staffer, I used to hate arguments such as this one, confident in the belief (like everybody else in this business) that we could do better than anything that existed out there.
Now that I am a bit (ergh, quite a bit :-) more seasoned, my views on this topic have changed radically. Although one could point that this change of heart is more than a little self-serving considering that I am a supplier of a packaged client reporting solution, I must say that the following findings match perfectly what corporate clients I deal with are telling me with increasing conviction.
According to Gartner inc., buying packaged software (as opposed to building custom solutions) is now the dominant trend amongst corporate IT departments. Furthermore, “… build activities within organizations should be focused on quick and inexpensive ‘hits’, as well as projects that just cannot be purchased at any price”.
Here is a quick check-list to help decide whether to buy or build:
1. Can a proven, packaged solution be purchased?
2. What is the best use of development resources?
3. Does the solution or function add a competitive edge or advantage?
The last question is of particular interest to me. Contrary to what once was common wisdom, not all IT initiatives (not even most, actually) are a source of market differentiation and competitive advantage. Therefore, businesses should focus their resources on what they do best, which is serving their customers, and leverage the R&D investments of specialized supplier for commoditized IT functions.
By the way, did I mentioned that automating the creation of business documents is a commoditized IT function in which we have invested significant R&D efforts? ;-)
Comments