Build vs buy decisions are some of the most critical in IT strategy. Use this framework to make defensible choices that align product management and finance teams.

TCO Horizon

Calculate total cost of ownership over 5-7 years, not just purchase price. Include licensing, implementation, ongoing support, customization, and eventual replacement costs.

Time-to-Value

How quickly do you need the capability? Enterprise software typically requires 12-24 months for full deployment. Custom development may be faster for specific use cases.

Differentiation

Is this a core competitive advantage or a commodity function? Build what differentiates you; buy the rest. Don't waste resources reinventing standard capabilities.

Risk

Assess technical risk, vendor lock-in, and ability to maintain custom solutions. Consider your team's skills, capacity, and strategic priorities when evaluating risk.

Exit Costs

Can you switch solutions reasonably if needed? Evaluate vendor lock-in, data portability, integration complexity, and exit costs when making your decision.