From an economic point of view, there is no simple answer to the question of whether a system should be developed in-house or provided as standard software (make or buy).

Module 6: IT Purchasing

The IT Purchasing module teaches the basics of value-oriented purchasing. On the basis of the calculated value contribution, the aim of purchasing is to achieve an optimum relationship between price and performance when purchasing IT services (applications, hardware, services). To this end, we look at the central tasks of procurement, controlling, reporting and process.

The classic question of “make or buy” in IT production is about the question of whether to produce something in-house (e.g. all software development activities, hardware procurement) or whether to buy something from a supplier.

The customer’s objectives are essential when making a make or buy decision. What is important to them? Time to Market? The most cost-effective solution? How close is the solution to the standard? Various decision criteria and solutions are presented in this seminar.

Topics

• Sourcing strategy – make or buy
• Make or buy – process and results
• In-house development vs. standard software
• Do it yourself vs. external service provider

Methods

In order to guarantee you the best possible learning outcome, we combine a range of methods in our seminars. The following are used in this module:

• Key Notes
• Best Practices
• Discussions and exchange of experiences between trainers and participants
• Self-reflection
• Collegial case work

Benefits

Deepening the understanding of the complex decision between in-house development and standard software (make or buy) in the IT sector.

Acquisition of knowledge about the basics of value-oriented purchasing and the optimization of the price-performance ratio for IT services.

Practical application of decision criteria and solution approaches for make or buy decisions in various situations.

Develop skills to analyze customer objectives and derive appropriate strategies for IT procurement.

Expand knowledge of the make or buy process and the associated outcomes for effective business decision making.

These topics are of particular interest to the following groups of people:

Target group

• IT Buyer
• IT Controller
• Group/team/department manager

Seminar language:

German (optional: English)

The seminar is part of the IT Value Manager Purchasing certificate (Level EK).