In today’s world of competitive cost with excellence, decentralization of production and development is the key to obtain global talent from the best provider around the world, who can deliver quality with economy due to higher efficiency or economics of scale.
We can get low cost excellent coders in countries like India, Bangladesh, low cost design and development facilities in Philippines, Thailand etc.
For very sophisticated production we can certainly look towards Japan, for example abode flex development, which is now running the I phone, and mobile gaming market is superior in Europe and certainly economical in SE Asia.
So, as per requirement we need to decide the geography from where we take our BUY decision, it is a decision on a matrix that includes low cost- low quality, low cost medium quality, medium cost medium quality, high cost high quality and medium cost high quality.
At times make decision is more viable, when we can employ man, machine, and material and produce quality, quantity and competitive cost.
This is very prevalent in automobile, computer, television, music system, cell phone markets.
There it is mostly buy and assemble with integration of some indigenous technology either in software, product feature or production. We are having Tally for instance, which is completely tailor made for small and medium based business.
Similarly, when we are talking about customized Erp software, small and medium companies like biscuit manufacturing companies Biskfarm, leather shoes company like Sreeleathers and Khadims choose tailor made customized ERp solutions which are much more cost effective as well as suitable for their kind of business.
They are mainly easy to use and quite flexible.
As most think that Make or Buy as to be only a cost saving decision, but it is a very narrow thought as buy is not saving cost or creating moderate product or service, buy can also be for creating superior product or service features, to get the best around the globe and integrate them in one product or service. So today make or buy is a cost decision, quality decision, and strategic decision to produce possible excellence in given cost
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Make or Buy removes limitations of production and development and opens a whole new dimensions to our thoughts and requirement from the point of view of organizations marketing, sales, customer satisfaction and organization profit point of view Global technological collaborations, knowledge and information sharing, resource sharing, infrastructure sharing is largely a part of make or buy.
So, Make or Buy is today one of the most important and diligent decision that organizations have to make taking in view long term prospect.
