According to Gartner, an American technological research and consulting firm, worldwide IT spending is projected to total $4.7 trillion in 2023, an increase of 4.3% from 2022. With tech talent shortages, CIOs are opting for technologies that enable automation and efficiency to drive growth at scale with fewer employees. This begs the question: is it better to build a homegrown software solution or outsource to a third-party provider? In this blog, we uncover the pros and cons of onboarding an outside platform over building a software solution.
Why Not Build Your Own Software?
In-house solutions sound like a good idea on the surface: build your own software solution, enjoy the cost benefits, exercise greater control, and fix your problems. Ideally, you could “own” your solution and control the process from A to Z.
But that’s not always how it ends up in practice. A McKinsey survey of IT executives reported that large IT projects ran over budget 45% of the time and 56% of those projects delivered less value than planned. In fact, 17% of the projects turned out so poorly, they “[threatened] the very existence of the company.”
That’s too much risk to take on but the numbers highlight the need to invest in an existing software instead. When you invest in the right pre-established systems, you can exercise the same amount of control while keeping a lid on costs.
Why Buy A Software Solution Instead?
Even if you don’t like the idea of buying a third-party software solution at first glance, consider the benefits. The first? Speed. In one survey on global outsourcing, Deloitte found 90% of organizations were considering or currently adopting cloud solutions because they otherwise wouldn’t be able to build the solutions they need on their own.
Long-term, maybe, but catching up with a marketplace that’s always on the move with the latest software solutions is much more difficult when you take on the responsibility of building solutions instead.
There’s also the benefit of predictable pricing models. You don’t have to worry about an IT project running over budget when you know exactly what you’ll pay for a software solution, and when. Software with predictable scaling also helps you control your costs, even when you use the solution more than you originally planned.
Integrate Your Brand with NuOrder’s Wholesale Software
Wholesale software that can fully integrate with your brand may not seem worth the time as the process can require more upfront investment. You’ll need to seek out software capable of meshing with your brand’s existing systems.
NuORDER integrates with various ERP's, PLMS, and more for running every aspect of your business. A recent story at Outside Online highlighted many other integrations at NuORDER, as well as the top brands that have come to trust NuORDER to deliver these integrations with stability and speed.
If you want to know more about how to integrate NuORDER, you can visit our “Can my system integrate with NuORDER” page.