Volume 4

V4 N2 Pages 38-51

August 2011


Make or Buy: A comparative assessment of organizations that develop software internally versus those that purchase software


Mark Sena
Xavier University
Cincinnati, OH 45207, USA

James Sena
California Polytechnic University
San Luis Obispo, CA 93407, USA

Abstract: This study reveals insights from 221 interviews to compare the perspectives of executives in organizations who generally tend to develop or maintain software in house versus those who tend to purchase software from vendors or outsourced providers. The key findings reveal that organizations who purchase software do not differ from those who develop software in their perspectives on the strategic importance of information technology and the role of information technology as a way to differentiate from their competitors. The findings do reveal that organizations that purchase software also are more likely to outsource IT and to use offshore labor. In addition the study reveals that organizations that develop software are perceived as being more efficient in the collection and storage of data to support business operations.

Keywords: make vs. buy, strategic use of IT, Outsourcing

Download this article: JISAR - V4 N2 Page 38.pdf


Recommended Citation: Sena, M., Sena, J. (2011). Make or Buy: A comparative assessment of organizations that develop software internally versus those that purchase software. Journal of Information Systems Applied Research, 4(2) pp 38-51. http://jisar.org/2011-4/ ISSN: 1946-1836. (A preliminary version appears in The Proceedings of CONISAR 2010)