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Written by lotus
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Saturday, 30 July 2005 |
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Page 17 of 22
5.4 Make or Buy Decisions
The make or buy process usually weights risk as a factor in the decision to
use internal or external resources. An often-used and reliable vendor for procurement
of good and/or services that the vendor routinely provides is a low risk. However,
the use of a new vendor who is working in an area new to that organization is
at least as risky as doing it internally. However, the risk associated with
using a subcontractor for a development effort can often be cost effective if
the vendor has specific analytical skills and/or test capabilities that would
be too costly to duplicate internally.
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Last Updated ( Saturday, 08 April 2006 )
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