TOPIC: Make-Buy Decision Analysis Question

If a company conducted a make-buy decision analysis and concluded that work can be done inside the organization under what scenario buy decision can still the best choice?

Hi Ginna:

If I understood your question properly, you could consider 'buying' or 'outsourcing' for the following reasons:

• There is no resourcing capacity to build the item
• The skills are not present and there is no time to upskill
• Strategically if makes sense. For example, if you are looking to partner down the road.
• Purely based on cost - maybe to volume is too high or too low to produce inhouse

This list isn't exhaustive but should give you a good sense of what to consider.

Tracey

Thank you Tracey, your information is very helpful. In summary, make or buy analysis is based on operational (capacity) and strategic factors

For you experience and considering that I may have both options as answers in the PMP exam which will be the most important factor?

I can only tell you based on my experience.....Although both are important decision making factors, Strategy is always considered prior to operation capacity. If a decision does not ladder up to the organizations strategic direction, it needs to be discussed with senior management.

Tracey