Factors affecting the buy vs build decision in large Australian organisations

  title={Factors affecting the buy vs build decision in large Australian organisations},
  author={Patrick C. K. Hung and Graham C. Low},
  journal={Journal of Information Technology},
When developing an information system, organisations are faced with a fundamental choice: to buy a pre-developed package (potentially customise it or redesign/reengineer the business processes of the company concerned to fit the package), or to build the system in-house. Past literature has indicated the importance of the buy vs build decision to the organisation even suggesting that correctly managing the choice could be the key to managing IT. This research aims to identify the factors that… 

An Investigation of ‘Build vs. Buy’ Decision for Software Acquisition in Small to Medium Enterprises

The prevalence of computing and communication technologies, combined with real-time transactions, and sophisticated and highly specialised software packages have made package acquisition a viable

Achieving strategic alignment: a decision-making perspective

New insights reveal that the structure of the decision-making process inherent in achieving strategic alignment is shaped by organizational and decisional factors, potentially suggesting the existence of additional decision- making routines.

Success factors in information technology projects

Failure of IT projects has been a major problem over decades. The previous study have found that big IT projects overran 45% of cost, 7% of schedule and produced 56% less profit than expected

The impacts of industry environment on software insourcing, outsourcing, and buying

PurposeNowadays, an increasing number of firms choose to develop proprietary software, instead of buying packaged software. What factors will affect different types of software investments? According

Boundary Objects for Value-based Requirements Engineering

The goal of this paper is to make explicit the boundary objects between requirements engineering and business value decisions and to study the relevance of the identified boundary objects.

The Morning After: What Happens When Outsourcing Relationships End?

The main contribution of this chapter is to present an outsourcing decision model and demonstrate its applicability with respect to a recent sourcing decision.

Institutionalisation of Enterprise Systems through Organisational Isomorphism

The analysis of IS implementation and lifecycle management theories concludes that, ERP systems or for that matter any information system is a socio-technical system; and the social, cultural,

Towards an Application Life-Cycle Approach for Selective Outsourcing

The research revealed that the life-cycle perspective allows a differentiated view on outsourcing decisions, which is required for selecting applications for ASO.

The changing returns on IT investment

This study suggests that the impact of IT investment on productivity may not be constant but may change with the IT investment scale and over time, and suggests that commercial IT and in-house IT should be distinguished, as they have different impacts on productivity.

ERP: uma investigação sobre a decisão entre comprar pacote comercial ou desenvolver internamente

O cenario contemporâneo exige das organizacoes uma maior preocupacao em tornar mais efetiva a gestao de suas atividades, com o objetivo de aumentar sua competitividade por meio da reducao de custos e



A strategic model for the formulation of an effective make or buy decision

Illustrates that the make or buy is a strategic decision and has implications for the overall corporate strategy of the organization by describing a model which involves analysing a number of

A process model of make-vs.-buy decision-making. The case of manufacturing software

The decision to develop (make) a product or process internally or to purchase the relevant technology (buy), an issue facing many organizations, is discussed. What has been written about make-vs.-buy

A Model of Organizational Innovation : Build versus Buy in the Decision Stage

This study examines organizations’ innovation decision to build or buy an information system by analyzing the various components of the decision process.

Relative importance of evaluation criteria for enterprise systems: a conjoint study

The study represents the first empirical investigation of the relative importance that managers ascribe to various factors that are believed to be important in evaluating packaged software, and provides important insights for both organizations that acquire such systems and those that develop them.

A framework for managing software make or buy

A framework for managing software make or buy is proposed, based on the strategic importance of applications, and the relative skills of internal and external software sources, which results in firms developing specialised skills in response to increasing specialisation in the software market.

Assessing and managing the benefits of enterprise systems: the business manager's perspective

An ES benefit framework for summarizing benefits in the years after ES implementation is proposed and how the framework has been applied to the identification of benefits in a longitudinal case study of four organizations is shown.

The Importance of Factors Other Than Cost Considerations in Make or Buy Decisions

The majority of make or buy decisions are invoked in the name of “cost”, but the two case studies outlined in this paper demonstrate that cost is only one of a multitude of criteria which managers

Make or buy—a key strategic issue

The key role of applications software make-or-buy decisions

  • T. Rands
  • Computer Science
    J. Strateg. Inf. Syst.
  • 1992

Two dimensions of software acquisition

This article develops a general cost-benefit decision framework for the software acquisition problem and uses this framework and software acquisition data to investigate six hypotheses characterizing software acquisition, offering managers a basis for structuring and benchmarking their software acquisition decisions and vendors insights into the characteristics of the software projects that would be most beneficial to target.