The decision to make or buy is never an easy one.
Project managers or CPO´s may dedicate hours analyzing business strategy or the current economic factors in order to evaluate the risks involved in outsourcing.
Unfortunately, a lot of the time they are only called upon after high level deliberating. Too often decisions about making or buying are based on insignificant or inadequate analysis. Assessments should always be objective and informed.
Believe it or not, the decision is often unintentional
Often, in-house development is something that “just happens”. A workaround to a problem is needed and before you know it, you have dedicated staff working on a wild-and-woolly yield management solution. The perception may be that using existing resources is cheaper but who is monitoring the hours?
How do you retain and share the knowledge within the company? There are always hidden costs that are not taken into account when deciding on an in-house approach.
When making a conscious decision on whether to invest in our flexible and innovative solutions, customers have to consider many factors including costs, benefits, risks and rewards. There is always an economic, human and technological aspect when it comes to these decisions.
We have found that the reasons why customers choose to develop in-house are usually:
– Time concerns – they think that they can achieve their goals in due time, but the only problem is that they usually have a mistaken perception of the amount of time necessary.
– Customizability – they are of the opinion that a complete solution could not possibly be found in an off-the-shelf software, but are unaware that constant adjustments require continual reworking from in-house programmers and designers.
– Costs – they believe that it is more cost effective to develop a solution using their existing resources, but costs are often significantly higher in the long run due to unforeseen obstacles and an underestimation of the overall project size.
Why reinvent the wheel?
It is never a simple task to find appropriate staff with the expert skills necessary to develop the kind of software that we offer. What is worse, is that when a developer leaves they usually take their knowledge with them.
As suppliers, we are able and willing to meet the innovation demands of our customers, it is what we do.
Due to our expertise, we can deliver a superior quality product at a far lower cost than could ever be achieved “in-house”.
We at DR YIELD do not simply deliver an off-the shelf, “shake ´n bake” solution. Our continual collaboration with existing customers allows us to deliver a constantly developing product. One that encompasses the needs of all our customers in the industry. We have a solution for everyone.
So, choosing the lowest offer is not always enough and focusing on an in-house solution is not always cheaper. Choose a supplier that can maintain an advantaged cost position over time, one who will ultimately save you costs in the long run.
Be careful what you wish for!