To Buy or To Build - Comparing the Risks

Obsolescence

The major cost of custom software occurs after installation.  Unfortunately, many managers are not prepared for these expenses, and many will find it difficult to continue to update the application.  They can frequently find their initial investment begins to disappear into obsolescence due to budget constraints. 

Obsolescence is a very limited risk for commercial software.  To remain competitive, an established software vendor must monitor both their competition and new technological changes and maintain an ongoing development effort.  Unlike with a custom application, no one client bears the cost of this effort, yet all clients enjoy the benefits.

For more on Risks, please see:

• Financial Risks

• Quality of Support

• Documentation and Training Services

• Obsolescence

• Some Conclusions

For anyone considering building a "home grown" system, we strongly recommend you read this article in detail and review the references provided.