Using Agile for Buy Vs. Build Decisions

When exploring possible IT solutions to business problems, one of the key questions that should be asked early in the process is whether it makes more business sense to either build the solution entirely, buy an off-the-shelf package and integrate it, or some combination of build and buy. For many companies, this decision can be just as time-consuming, labor and cost intensive as the actual development itself. It is our belief that, as a key strategic decision, the buy vs. build process should make every effort to leverage the strengths of Agile. By applying Agile techniques to the buy vs. build process, organizations are able to accelerate and focus the decision-making process. Ultimately, the marriage of Agile and buy vs. build allows teams to maximize value to the business and keep the product development cycle as "agile" as possible. In this paper, we will explore our experiences in applying Agile techniques to help in this key decision. Examples will be provided from our experiences to date that illustrate how Agile can be used to address the buy vs. build question.