Make vs. Buy
If you’ve taken a class or read a book on business strategy, you’ve likely come across the “outsourcing decision”. In this decision, a business compares the costs and benefits of producing a part or service internally versus the costs and benefits of paying someone externally to do it. For this decision to be accurate, all the associated costs and benefits need to be factored in. One of the hardest variables is the opportunity cost – what new product or service can my business not develop because it’s busy working on something else? Read more