Make vs. buy decision for custom app

From: Greg Freemyer (freemyer@NorcrossGroup.com)
Date: Thu Jun 20 2002 - 15:17:11 EDT

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Admins,

This may be OT, but ...

Many, many years ago I remember reading that 80% of all major custom internal software projects in Fortune 500 companies failed.

I would like to find a current failure rate, and an authoritative source for that rate.

Any ideas on where I can find that?

=== Why I care.
I've been asked by a team at Fortune 500 company to help them make a "make vs. buy" decision.

They want to implement a fairly complex custom app. that they saw at one of their competitors.

The competitor is willing to license the app. with source, but it looks like it will be a couple of million bucks to get it from them.

Alternatively, my customer can build its own from scratch.

My question relates to the risk of doing this. i.e. Even if they think they can do it for less money, is it worth the risk of failure during the development phase.

Greg Freemyer
Internet Engineer
Deployment and Integration Specialist
Compaq ASE - Tru64
Compaq Master ASE - SAN Architect
The Norcross Group
www.NorcrossGroup.com

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