A make-or-buy analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or must be purchased from outside sources. Sometimes a capability may exist within the project organization, but may be committed to working on other projects, in which case the project may need to procure such effort from outside the organization in order to meet its schedule commitments.
Any budget constraints are factors which may influence make-or-buy decisions. If a buy decision is to be made, then a further decision of whether to purchase or lease is also made. A make-or-buy analysis should consider all related costs, both direct costs as well as indirect support costs. For example, the buy-side of the analysis includes both the actual out-of-pocket costs to purchase the product, as well as the indirect costs of supporting the purchasing process.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.