Time and time again, business leaders debate whether to build or buy a software solution to solve the many problems they face. This is especially apparent in the higher education sector where there is access to a large pool of talent, and the potential resources to achieve a bespoke solution. The Project Management Institute’s latest report reignites this debate. Let’s discuss in-house vs off-the-shelf software investment.
The report shows that 33% of IT projects fail, with budget lost, while 36% go over budget and 25% do not meet the original goals set for the project.
These figures point to the challenges associated with in-house software development and call for another assessment of the pros/ cons of building solutions compared to buying them. To confidently decide if you should build or buy, let’s break down the advantages and disadvantages of in-house vs off-the-shelf investment:
In-House Development
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Cons |
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Off-The-Shelf Software
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Cons |
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The Challenges
Three of the main challenges facing in-house software development include scope, capability and time.
Scope
Maintaining a distinctive project scope and objective can be difficult as demands are raised by competing departments. Building bespoke software can mean that everyone wants their say in what the software should do, often outside of the realm of realistic, affordable possibility.
Capability
The challenge of capability most often comes down to the resources and budget available for the project. From a cost perspective, it is difficult to compete with off-the-shelf solutions, which are built by a specialised team for a singular purpose. The fact that an in-house team not only have to create the software but also maintain and upgrade it indefinitely, adds additional resource and budget considerations.
Time
Another major challenge for in-house software development projects is time. Defining the project scope and objectives to successfully implementing and running the solution, can take years from start to finish. Many in-house projects encounter obstacles and headaches along the journey that slow down progression and the result is massive delays to solutions that many teams need urgently.
The Conclusion
The weight of the pros and cons for in-house vs off-the-shelf investment will be different depending on your institution and their particular needs. Very specific software requirements are often the biggest motivation for building an in-house system, despite the many challenges associated with it. For the best option, institutions should look for an off-the-shelf solution that offers them high levels of customization. This may address all the requirements of an institution specific solution, without all the additional headaches.
