Critical success factors affecting build or buy decisions for in-house used embedded systems in Sri Lankan companies

Abstract

BUILD or BUY embedded systems, which are used in-house/within the company; which is inherently better for the requirement? The decision between these two types gets a lot of effort and focus in many companies around the globe. While some companies fail to meet their minimum expectations due to their decisions, some succeed and some even go well beyond their expected level. This dilemma has been there since companies started using embedded system inside their companies. While many factors may need to be considered when making this decision, identifying the critical success factors for BUILD or BUY decisions on in-house used embedded systems is of vital importance with the heightened competitiveness in Sri Lankan embedded industry. Managers can align their goals and strategize to avail from these critical success factors to propel the company to success while avoiding potential pitfalls. Since many business owners are vague on the factors to favour when making such decisions, through this study the author identifies the critical success factors for BUILD or BUY decisions on in-house used embedded systems by interviewing Sri Lankan companies who made such build or buy decisions. When analysing the gathered data, Straussian Grounded Theory was used and a case-by-case account of each decision-making event is used to then identify: Decision Maker’s Experience, Strategic Relevance, Decision Making Process, Vendor Selection, IT Workforce, and Cost to be the 6 critical factors to consider for a successful decision. The author then constructed recommendations with the above findings.