Should you build or buy software? This Wall Street firm has a new tool to decide.

Image for article Should you build or buy software? This Wall Street firm has a new tool to decide.
News Source : Business Insider

News Summary

  • Analysts at RBC Capital Markets built an interactive tool to test the build-versus-buy debate.
  • Companies can plug in the cost of a software subscription, then compare it with the full cost of building and running an in-house alternative.
  • RBC's conclusion is sobering: Building your own version of business software is usually more expensive than buying it.
  • Even when a custom app is possible, companies must ask whether their best AI workers should rebuild existing software or create something genuinely new.
A bricklayer builds a wall at a construction site in Kuala LumpurReuters A version of this story originally appeared in the BI Tech Memo newsletter.

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