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Build vs Buy Decision Framework

Compare building and buying through capability fit, total effort, control, time to value, switching cost, and the evidence behind future demand.

How we edit

Build and buy create different obligations

Buying transfers some development work but adds vendor dependence and contract limits. Building adds control but creates an ongoing product, security, maintenance, and staffing obligation. Compare complete operating models rather than purchase price against developer salary.

Example: internal reporting platform

A custom build appears cheaper until support rotation and data connector maintenance are counted. A commercial product is faster but has an export limitation. A short integration test reveals whether the limitation is a gate.

Normalize the two paths

  1. Define the capability and service level.
  2. Estimate five-year ownership effort.
  3. Price delay and integration work.
  4. Test demand and exit scenarios.

Strategic control can dominate cost

Build may be justified when the capability creates defensible advantage or vendor constraints threaten the core service. Name that advantage instead of calling all customization strategic.

The decision rule

What to record before acting

Choose the operating model whose full obligations fit the capability's strategic importance and expected life.

Apply the rule in context with compare ownership cost and practical fit. Keep the evidence and assumptions with the decision so an outcome review can distinguish reasoning from luck.

Continue within work and business decisions

How to Build a Vendor Selection Scorecard

Build a vendor scorecard from verified requirements, anchored criteria, comparable demonstrations, and contract evidence instead of sales polish.

How to Build a Vendor Selection Scorecard

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