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Project Management & Agile · Foundational

Make-or-Buy Analysis

Analysis used to determine whether work or deliverables are best produced internally or purchased externally.

Definition

Considers direct and indirect costs, capability, capacity, control, intellectual property, risk, and strategic fit. The result is a make-or-buy decision.

Example

Comparing building an identity system ($400k + maintenance) vs. a SaaS subscription ($90k/year).

Exam tip

Include ongoing costs and risk, not just purchase price.

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