Make-or-Buy Decisions and Vendor Management

The decision between custom development (Make) and standard software (Buy) is one of the most consequential turning points in IT strategy. We weigh long-term total cost of ownership (TCO), strategic dependency, and actual competitive advantage against each other, with an objective factual basis as the foundation.

Focus Areas

TCO Modeling over 5–10 Years Not only acquisition costs count: maintenance, updates, hosting, and internal resources are calculated over the entire lifetime.

Differentiation Check We assess whether a process is a standard commodity (e.g., accounting) or a competitive core process. Only core processes justify Make.

Vendor Due Diligence We audit potential software partners for technological maturity, API openness, financial stability, and compliance with local standards.

Use Cases

  • ERP/CRM Evaluations: Choosing the right core system for SMEs and NGOs.
  • Legacy Modernisation: Deciding whether to rehabilitate a legacy system or replace it with a modern SaaS solution.
  • Build Processes: Conception of individual software with internal teams.

Methods

The methods behind this are documented in the Neuland Handbook: