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In a news and information company, when discussing how to satisfy client demand for new or enhanced content, it’s not too long into the discussion before the “build or buy?” question gets asked, a question that Rupert Murdoch has been notably adept at answering successfully throughout his media mogul career. From a project initiation perspective, this is exactly the right place to start, because it speaks immediately to the capability of the enterprise to meet that demand (“Can we do this in-house, or do we have to go outside?”).
Ancillary questions, such as, “Is this a catch-up or a cutting edge play?” are also considered in arriving at a final decision. Depending on how widely commoditized or highly proprietary the desired content, an analysis and comparison of the alternate costs of acquisition usually follows. If content is replaced with market share as the subject of the question, then I can pretty much guarantee that someone, somewhere, is trying to come up with the right answer to their own build-or-buy question, right now.
But whether the subject is content or market share, contracting to acquire resource, expertise or other capabilities necessary to satisfy a business need is integral to the success of many projects.
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